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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 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

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