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st: Multinomial selection, but Selmlog/Svyselmlog not feasible
I want to examine the relationship between alcohol and wages. Taking
into account that smoking and drinking are related I estimate separate
models for smokers and nonsmokers.
My question: Assuming that selection into employment and smoking are not
random, how can I correct for selection bias? I first thought of using
selmlog/svyselmlog by generating a multinomial selection var (empl.
smoker; empl. nonsmoker, not empl. smoker; not empl. nonsmoker), but
these progs require observed values in y for only one of these
Given that I observe wages for employees irrespective of smoking
behavior I cannot employ selmlog/svyselmlog. I'm thus somewhat stuck
since the authors of selmlog (Bourguignon et al.) show in their recent
J. of Economic Surveys article that the widely used procedure proposed
by Lee may not be appropriate.
Any insights or ideas for alternatives?
Thanks in advance.
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