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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

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'.

Suggested Citation

  • Rodolfo Hoffmann & Ana Lucia Kassouf, 2005. "Deriving conditional and unconditional marginal effects in log earnings equations estimated by Heckman's procedure," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1303-1311.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1303-1311
    DOI: 10.1080/00036840500118614
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    References listed on IDEAS

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    1. Atanu Saha & Oral Capps & Patrick Byrne, 1997. "Calculating marginal effects in models for zero expenditures in household budgets using a Heckman-type correction," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1311-1316.
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    5. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, January.
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    2. 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).
    3. Vance, Colin & Iovanna, Rich, 2007. "Gender and the Automobile – An Analysis of Non-work Service Trips," Ruhr Economic Papers 11, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. 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.
    5. repec:zbw:rwidps:0039 is not listed on IDEAS
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    7. Vance, Colin, 2006. "Marginal Effects and Significance Testing with Heckman's Sample Selection Model: A Methodological Note," RWI Discussion Papers 39, RWI - Leibniz-Institut für Wirtschaftsforschung.
    8. Zahoor Haq & Karl Meilke, 2009. "The Role of Income in Trading-Differentiated Agri-Food Products: The Case of Canada, the United States, and Selected EU Countries," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 343-363, September.
    9. 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.
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    12. Oppedisano, Veruska, 2011. "The (adverse) effects of expanding higher education: Evidence from Italy," Economics of Education Review, Elsevier, vol. 30(5), pages 997-1008, October.
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    17. Jean-Guy LORANGER & Gérard BOISMENU, "undated". "A Dynamic Institutional Analysis with a Macroeconomic Model," EcoMod2010 259600107, EcoMod.
    18. repec:eee:ecolec:v:142:y:2017:i:c:p:177-184 is not listed on IDEAS
    19. 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.
    20. 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.
    21. 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).

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