Selection-bias correction based on the multinomial logit: An application to the Mexican labor market
In this presentation, we illustrate an application of a relatively new selection-bias correction methodology based on the multinomial logit model using the selmlog Stata command (Bourguignon, Fournier, and Gurgand, 2007, Journal of Economic Surveys 21: 174–205). selmlog allows for getting both consistent and efficient estimates of the selection process and a fairly good correction for the outcome equation, even when the independence of irrelevant alternatives (IIA) assumption is not achieved. The exercise depicts the current pattern of the occupational choices for the individuals in the Mexican labor market using a longitudinal panel with microdata from the Encuesta Nacional de Ocupación y Empleo (ENOE) during February 2008 to March 2009. We estimate an equation over an endogenously selected population. The command grants simplicity for both distributional and IIA assumptions for parametric models.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hausman, Jerry & McFadden, Daniel, 1984.
"Specification Tests for the Multinomial Logit Model,"
Econometric Society, vol. 52(5), pages 1219-40, September.
- D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
- Schmertmann, Carl P., 1994. "Selectivity bias correction methods in polychotomous sample selection models," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 101-132.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Kristin F. Butcher & John DiNardo, 2002.
"The Immigrant and native-born wage distributions: Evidence from United States censuses,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
- Kristin F. Butcher & John Dinardo, 2002. "The Immigrant and Native-Born Wage Distributions: Evidence from United States Censuses," ILR Review, Cornell University, ILR School, vol. 56(1), pages 97-121, October.
- Kristin F. Butcher & John DiNardo, 1998. "The Immigrant and Native-born Wage Distributions: Evidence from United States Censuses," NBER Working Papers 6630, National Bureau of Economic Research, Inc.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- François Bourguignon & Martin Fournier & Marc Gurgand, 2004.
"Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons,"
DELTA Working Papers
2004-20, DELTA (Ecole normale supérieure).
- François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, 02.
- François Bourguignon & Marc Gurgand & Martin Fournier, 2007. "Selection bias corrections based on the multinomial logit model: Monte Carlo comparisons," Post-Print halshs-00201372, HAL.
When requesting a correction, please mention this item's handle: RePEc:boc:msug10:08. 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: (Christopher F Baum)
If references are entirely missing, you can add them using this form.