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st: RE: 2 Heckman regressions and Oaxaca decomposition


From   "Jann, Ben" <ben.jann@soz.gess.ethz.ch>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: RE: 2 Heckman regressions and Oaxaca decomposition
Date   Thu, 5 Feb 2004 21:32:54 +0100

log goho wrote:
> 1. When I tried Ben suggestion, stata doesn't find the variable LBDA.
> I have an error message saying that LDBA not found
...
> heckman   lwage varname...  if alien==0, select (varnames ) twostep 
> mills(lambda)
...
> decompose, lambda(lbda)
> ERROR MESSAGE

Uhh, I'm sorry, it should be 'lambda' not 'lbda' ('lambda' is the
variable containing the inverse mills ratio; of course one is free to
use any other name), i.e. your code should be:

 . heckman lwage varname...  if alien==0, select (varnames ) twostep
mills(lambda)
 . regress lwage varname... lambda if alien==0
 . decompose, save (high)
 . regress lwage varname... if alien==1
 . decompose, save(low)

 . decompose, lambda(lambda)

ben

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