Re: st: Heckprobit or Heckman Selection model (ML)?

[ncdcta00@uniroma2.it]

use heckprob if your depende var is binary and heckman is not, the  
other ways is to estimate the probit about the participation and after  
calculated the lambda(inv. mill) and put its in a Ls model.
I hope is useful


Quoting GJIPALI Arsena <A.Gjipali@staffs.ac.uk>:


> Hi,
>
> Doing my estimations on labour market returns to education, I am facing
> two concerns.
>
> 1) I have a very low value of R square (18%) for the earnings equation
> with OLS technique.
>
> 2) I want to estimate the probability of being in employment, accounting
> for participation in the labour force.
> I am applying the Heckman selection model (ML) wchich provides the
> inverse Mill's Ratio calculation for the selection bias of participation
> in the labour force. STATA also provides estimation of HeckProbit. I
> want to be assured that the former model is the one appropriate for me,
> given the censoring because of the effect of education on the labour
> force participation and than in employment likelihood.
>      Similar to this, I also estimate the probability of being enrolled
> in tertiary education of the group age 19-22. However, these are to be
> selected from the pool of young that have completed upper secondary.
> Hence, I am in a dilemma, whether I should choose the Heckman selection
> model (ML) or the HeckProbit.
> What would be the commands for the partial effects in these models?
> And what about any diagnostic tests?
>
>   Thank you in advance,
>
> Arsena
>
>
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