Unconditional Partial Effects of Binary Covariates
In this paper, we study the effect of a small ceteris paribus change in the marginal distribution of a binary covariate on some feature of the unconditional distribution of an outcome variable of interest. We show that the RIF regression techniques recently proposed by Firpo, Fortin, and Lemieux (2009) do not estimate this quantity. Moreover, we show that such parameters are in general only partially identified, and derive straightforward expressions for the identified set. The results are implemented in the context of an empirical application that studies the effect of union membership rates on the distribution of wages.
|Date of creation:||Sep 2009|
|Date of revision:|
|Publication status:||Published in Econometrica, vol. 80, n°5, septembre 2012, p. 2269-2301.|
|Contact details of provider:|| Phone: (+33) 5 61 12 86 23|
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