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st: How to handle sample selection bias

From   Hugh Colaco <>
To   statalist <>
Subject   st: How to handle sample selection bias
Date   Wed, 2 Dec 2009 12:58:23 -0500


I hope I am clearer this time in my example.

This is the -heckman- example from the -help- menu using the -twostep-

webuse womenwk
heckman wage educ age, select(married children educ age) twostep

Suppose I want to take it one step further and examine how wage
influences the personal
wealth of women.

Basically, I need to run the following model:-

wealth = f(wage, control variables)

I have data on the variable "wealth" for women who work AND women who
don't work.
I have data on some control variables only for women who work. I also
want to include in the regression interaction variables with wage
using some of the control variables that have data only for women who

How do I take care of the sample selection bias in the wealth equation?


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