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st: Multinomial selection, but Selmlog/Svyselmlog not feasible


From   Guido Heineck <guido.heineck@gmx.net>
To   statalist@hsphsun2.harvard.edu
Subject   st: Multinomial selection, but Selmlog/Svyselmlog not feasible
Date   Mon, 21 May 2007 16:16:48 +0200

Dear all,

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 categories/choices.

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.

Best,
Guido

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