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st: selmlog: question
I'm trying to estimate the effect of self-employment experience. My analysis considers the following selection rules:
1. Wage-employed in period t and period t+5
2. Self-employment spell between t and t+5.
This selection model thus consider 4 possible outcomes as illustrated below:
WE,t and WE,t+5
YES 1 2
NO 3 4
One way to estimate this selection model is to use --selmlog--.
However, selmlog can only estimate the wage equation (the equation of interest) for one outcome of the selection process. But I'm interested in running a wage regression for outcome 1 and 3 (see above). In other words, I'm trying to estimate a model that accounts for both sample selection and endogenous treatment (the SE spell).
Does anyone have any advice how to correct --selmlog-- to estimate the equation of interest for two outcomes of the selection process? Any suggestions are very welcome.
Centre for Economic and Business Research
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