I am using STATA for my PhD research. In my work, I want to estimate the
earnings function of women but I want to correct for sample selectivity
bias using the Heckman procedure which involves estimating a labour force
participation function. The inverse Mills ratio which is derived from the
participation function and then included in the earnings function. In
estimating the labour force participation function, do I use a probit or
logit model? Is it preferable to use probit as most researches do and why
is probit prefered in the Heckman procedure?
Jacqueline Fernandez
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