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Nonseparable sample selection models with censored selection rules

Authors: Ivan Fernandez-Val , Aico van Vuuren and Francis Vella
Date: 02 February 2018
Type: cemmap Working Paper, CWP10/18
DOI: 10.1920/wp.cem.2018.1018

Abstract

We consider identification and estimation of nonseparable sample selection models with censored selection rules. We employ a control function approach and discuss different objects of interest based on (1) local effects conditional on the control function, and (2) global effects obtained from integration over ranges of values of the control function. We provide conditions under which these objects are appropriate for the total population. We also present results regarding the estimation of counterfactual distributions. We derive conditions for identification for these different objects and suggest strategies for estima-tion. We also provide the associated asymptotic theory. These strategies are illustrated in an empirical investigation of the determinants of female wages and wage growth in the United Kingdom.

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