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st: Re: endogeneity in heckman selection model

From   "Rao, James" <>
To   <>
Subject   st: Re: endogeneity in heckman selection model
Date   Tue, 6 Apr 2010 17:53:47 +0200

Dear Statalisters,

I am estimating a labor demand equation that is "incidentally truncated" in
the words of W. H. Green (2006), since demand for hired labor is only
observed for those who actually hire labor. However, I am more interested in
the effect of a treatment variable on labor demand and I suspect that the
same treatment variable also has an effect on the selection equation -
determining whether or not one uses hired labor.  Therefore I end up with the
usual Heckman selection model but with a potentially endogenous variable in
both the selection and the labor demand equation. Could there be an approach
that can allow me to handle the endogeneity problem in this scenario.

Rao E.O. James (Msc)
Research Associate/PhD Student

Department of Agricultural Economics and Rural Development
Georg-August University of Göttingen
Platz der Gottinger Sieben 5
37073 Göttingen, Germany.
Tell:+49-551-394443 (Office)

Courage is not the absence of fear but the triumph over it ... so fear not to
fear ... but strive to overcome fear!

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