Dear Statalisters,
I am working on the estimation of the earning equations for Argentina�s wage
earners, considering the selection problem.
Considerations about high unemployment rate (20% of the labor force) lead me
to use an extension of Heckman�s metodology. The likelihood of the
individual�s reporting income is estimated from a bivariate probit
considering both the individual�s decision to join the labor force as well
as his likelihood of getting a job. So, up to here, I had estimated a
two-stage selection model with heckprob command, and then I used the inverse
Mill's Ratios to run OLS on the earning equation.
Now, I have to build a third selection rule, in order to consider wage
eraners only, a subpopulation of the total employment (wage earners are
around 70% out of total employment). How do I implement in STATA this third
selection rule?
Thanks in advance for your answers
Pablo
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