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Simplified Implementation of the Heckman Estimator of the Dynamic Probit Model and a Comparison with Alternative Estimators

Listed author(s):
  • Arulampalam, Wiji

    ()

    (University of Warwick)

  • Stewart, Mark

    ()

    (University of Warwick)

This paper presents a convenient shortcut method for implementing the Heckman estimator of the dynamic random effects probit model using standard software. It then compares the three estimators proposed by Heckman, Orme and Wooldridge based on three alternative approximations, first in an empirical model for the probability of unemployment and then in a set of simple simulation experiments.

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File URL: http://ftp.iza.org/dp3039.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3039.

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Length: 21 pages
Date of creation: Sep 2007
Handle: RePEc:iza:izadps:dp3039
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  15. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  16. Wang-Sheng Lee & Umut Oguzoglu, 2007. "Income Support and Stigma Effects for Young Australians," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 40(4), pages 369-384, December.
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