Dear all,
I am estimating a model of rural-urban migration and want to include a wage differential. If I understand the simultaneous estimation procedure as set out for STATA by Renzo Comolli a while ago, this means that I have to use the migration regressors and the wage equations regressors in the first probit estimation.
However, current earnings in my sample particularly in rural areas appear to be explained to a large extent by regional variation, current household size and current marital status, which are technically not exogenous to the migration decision taken sometime in the past.
Is there any way I can still include these variables in the earnings equations?
Your help is appreciated,
Fleur
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