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st: Heckman Method
Dear Statalist Members,
I am trying to estimate labor force participation and
work hour model using heckman's two step estimator. I
do not have wage data and consequently I am relying on
reduced from approach.
So far I have not used any exclusion restriction in
the first stage probit probit model and consequently
the entire identification strategy is based on the
normality assumption of the error terms. Many
economists argue to avoid such situation.
So I need a variable that effect labor force
participation but not work hours. I find it difficult
to identify such variable given the fact that labor
force participation and work hours are derived from
the same utility maximizing model.
Can any one suggest me of any such variable? Or should
I drop Heckman method and look for other method for
correcting selection bias? Which method?
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