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Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure

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  • Rodolfo Hoffmann
  • Ana Lucia Kassouf
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    Abstract

    Although the Heckman approach has often been used in empirical analysis, the marginal effects, necessary to interpret the effect of the regressors on the dependent variable, appeared to be overlooked. Using the Heckman approach, general expressions are derived for calculating the conditional and unconditional marginal effects. Based on a sample of Brazilian women, the conditional and unconditional return to education are calculated for the logarithm of earnings equation estimated by Heckman's procedure, comparing them to the marginal effect of education obtained without correcting for selectivity bias. The same analysis is carried out for a discrete variable 'black'.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500118614
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 37 (2005)
    Issue (Month): 11 ()
    Pages: 1303-1311

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    Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1303-1311

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    References

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    1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    2. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
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    Cited by:
    1. Yamagata, Takashi, 2006. "The small sample performance of the Wald test in the sample selection model under the multicollinearity problem," Economics Letters, Elsevier, vol. 93(1), pages 75-81, October.
    2. Colin Vance, 2006. "Marginal Effects and Significance Testing with Heckman’s Sample Selection Model: A Methodological Note," RWI Discussion Papers 0039, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    3. Quattri, Maria & Ozanne, Adam & Beyene, Seneshaw Tamru, 2012. "The brokerage institution and the development of agricultural markets: New evidence from Ethiopia," ESSP working papers 36, International Food Policy Research Institute (IFPRI).
    4. Juan Gabriel Brida & Marta Meleddu & Manuela Pulina & Vania Statzu, 2014. "Investigating informal learning at a cultural site," Economics Bulletin, AccessEcon, vol. 34(2), pages 634-650.
    5. Colin Vance & Rich Iovanna, 2007. "Gender and the Automobile – An Analysis of Non-work Service Trips," Ruhr Economic Papers 0011, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Dettmann, Rachael L., 2008. "Organic Produce: Who's Eating it? A Demographic Profile of Organic Produce Consumers," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6446, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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