Self-selectivity bias with a continuous variable: potential pitfall in a common procedure
When the choice variable is continuous, selectivity bias can in principle be dealt with by a procedure first suggested by Garen (1984). However, work reported in this paper on the estimation of hedonic wage equations with compensation for dangerous jobs, where selectivity bias could arise through the endogenous choice of jobs according to their riskiness, suggests that the Garen technique may not be robust. The lack of robustness comes from collinearity, which is a result of the common situation where the empirical fit of the choice equation is moderately successful but not outstanding.
Volume (Year): 33 (2001)
Issue (Month): 15 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:33:y:2001:i:15:p:1903-1910. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.