Dear Statalisters,
I need to estimate a selection model with the following features:
-the selection equation is a multinomial logit (3 alternatives). As
usual, the outcome variable is available for one of the alternatives
only.
-one of the regressors is endogenous both to the selection AND to the
outcome equation.
In particular, the setting is the following: I am estimating a wage
equation in a setting where wage is available for formal workers only
(not for informal or non-participants). The selection equation is
multinomial: non-participants, formal workers, informal workers.
Education (that can be coded as a dummy or as a continuous variable)
is endogenous to both equations.
Any idea?
Thanks alot!
Margherita
--
Margherita Comola
Paris School of Economics
Email: [email protected]
http://www.pse.ens.fr/comola/index.html
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