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Re: st: Sample selection variable for bivariate probit selection


From   "Carlos Gamero" <[email protected]>
To   <[email protected]>
Subject   Re: st: Sample selection variable for bivariate probit selection
Date   Fri, 25 Jan 2008 13:45:47 +0100

Dear Maarten,

Thank you very much for your answer. The only question is that I dont think I have two selection equations. I think I have one (do you work or not) but it must be estimated using a bivariate probit model, because the "being in education" decission is not exogenous, i.e., if you do work, then you probably find it harder to study (and vice versa). That's why I would like to estimate the selection equation as part of a bivariate probit model and, then, somehow take account of the selection problem later in the satisfaction equation (estimated as another probit model).

Thanks a lot, really.

Carlos Gamero



----- Original Message ----- From: "Maarten buis" <[email protected]>
To: <[email protected]>
Sent: Friday, January 25, 2008 1:16 PM
Subject: Re: st: Sample selection variable for bivariate probit selection



--- Carlos Gamero <[email protected]> wrote:
In your previous messages you advice me to use heckprob command in
order to manage the situation I describe. However, heckprob command
is designed to correct sample selection bias when both, main
regression (job satisfaction) and selection equation, are probit
regressions. But, what happens when you do not have a probit as
selection equation but a bivariate probit as it is in my case?
I read your problem as follows: You are substantively interested in
work satisfaction (satisfied/not satisfied) and you think you have two
selection equations: 1) do you work or not, and 2) are you in education
or not.

If that is the case, than you have just one selection equation: The
selection is that you cannot be satisfied of dissatisfied with your job
if you don't have a job. In education or out of education is not a
selection equation because you can still be satisfied with a job if you
are in education as long as you also have a job. You are less likely to
have a job when you are in education, but that just means that being in
education should be an explanatory variable in your selection equation.

Hope this helps,
Maarten




-----------------------------------------
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands

visiting address:
Buitenveldertselaan 3 (Metropolitan), room Z434

+31 20 5986715

http://home.fsw.vu.nl/m.buis/
-----------------------------------------


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