Dear All
I am trying to estimte a rural to urban migration model where one of the
regressors is a hypothetical rural-urban wage difference. The wage
difference is estimted by seperately estimating wages for rural
non-migrants and urban migrants and then subtracting.
The issue is that the wage difference is endogenous to the
logit(migration) model and should be estimated in a two-step procedure.
The literature suggests using Heckman. But I cannot figure how to enter an
endogenous wage difference (of two variables) in the Heckman syntax.
Any assitance will be appreciated.
irfan
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