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st: heckman correction with endogenous variables included


From   xueliansharon <[email protected]>
To   [email protected]
Subject   st: heckman correction with endogenous variables included
Date   Mon, 7 Mar 2011 17:08:49 -0800 (PST)

Dear all,

I want to estimate a wage equation (wage=x'b+u), and I want to use Heckman
correction procedure to correct for sample selection bias since only working
persons' wages are observed. However, the x's in the wage equation include
two endogenous variables x1 and x2, and I want to employ instruments I1 and
I2 (here, I1 is the IV for x1, I2 is the IV for x2) to address the
endogeneity problem. But I don't know how to employ instrumental technique
and Heckman correction simultaneously. Could anybody tell me how to solve
this problem?

Thanks in advance.

Best,
Sharon

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