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41
Mobility and the return to education: Testing a Roy Model with multiple markets
 ECONOMETRICA
, 2002
"... Selfselected migration presents one potential explanation for why observed returns to a college education in local labor markets vary widely even though U.S. workers are highly mobile. To assess the impact of selfselection on estimated returns, this paper first develops a Roy model of mobility and ..."
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Cited by 183 (0 self)
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Selfselected migration presents one potential explanation for why observed returns to a college education in local labor markets vary widely even though U.S. workers are highly mobile. To assess the impact of selfselection on estimated returns, this paper first develops a Roy model of mobility and earnings where workers choose in which of the 50 states (plus the District of Columbia) to live and work. Available estimation methods are either infeasible for a selection model with so many alternatives or place potentially severe restrictions on earnings and the selection process. This paper develops an alternative econometric methodology which combines Lee's (1983) parametric maximum order statistic approach to reduce the dimensionality of the error terms with more recent work on semiparametric estimation of selection models (e.g., Ahn and Powell, 1993). The resulting semiparametric correction is easy to implement and can be adapted to a variety of other polychotomous choice problems. The empirical work, which uses 1990 U.S. Census data, confirms the role of comparative advantage in mobility decisions. The results suggest that selfselection of higher educated individuals to states with higher returns to education generally leads to upward biases in OLS estimates of the returns to education in statespecific labor markets. While the estimated returns to a college education are significantly biased, correcting for the bias does not narrow the range of returns across states. Consistent with the finding that the corrected return to a college education differs across the U.S., the relative statetostate migration flows of college versus high schooleducated individuals respond strongly to differences in the return to education and amenities across states.
The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession
, 1999
"... The impact of air pollution on infant health is a topic of considerable interest to a wide range of researchers and policy analysts. Previous research has documented a statistical association between differential pollution levels across sites and variation in adult health outcomes. Evidence on the ..."
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Cited by 178 (23 self)
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The impact of air pollution on infant health is a topic of considerable interest to a wide range of researchers and policy analysts. Previous research has documented a statistical association between differential pollution levels across sites and variation in adult health outcomes. Evidence on the pollutionhealth relationship comes from three types of studies: 1) crosssectional investigations of the
Randomization as an Instrumental Variable
 Review of Economics and Statistics
, 1996
"... relationship between treatment parameters within a latent ..."
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Cited by 84 (9 self)
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relationship between treatment parameters within a latent
Changes in the Distribution of Male and Female Wages Accounting for the Employment Composition,”unpublished paper
 Institute for Fiscal Studies, 7 Ridgmount
, 2002
"... This paper presents estimates of the changing distribution of wages that are robust to possible selection effects. We find convincing evidence of an increase in overall inequality, changes in the “return ” to education and increases in inequality within age and education groups. On the other hand we ..."
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Cited by 36 (0 self)
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This paper presents estimates of the changing distribution of wages that are robust to possible selection effects. We find convincing evidence of an increase in overall inequality, changes in the “return ” to education and increases in inequality within age and education groups. On the other hand we find that the increase in the relative wages of women may have been driven by selection. 1 Introduction and
Endogenous Selection or Treatment Model Estimation
 Journal of Econometrics
, 2007
"... In a sample selection or treatment effects model, common unobservables may affect both the outcome and the probability of selection in unknown ways. This paper shows that the distribution function of potential outcomes, conditional on covariates, can be identifiedgivenanobservedvariableVthat affects ..."
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Cited by 27 (7 self)
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In a sample selection or treatment effects model, common unobservables may affect both the outcome and the probability of selection in unknown ways. This paper shows that the distribution function of potential outcomes, conditional on covariates, can be identifiedgivenanobservedvariableVthat affects the treatment or selection probability in certain ways and is conditionally independent of the potential outcome equation error terms. Selection model estimators based on this identification are provided, which take the form of either simple weighted averages or GMM or two stage least squares. These estimators permit endogenous and mismeasured regressors. Empirical applications are provided to estimation of a firm investment model and a returns to schooling wage model. Portions of this paper were previously circulated under other titles including, ”Two Stage Least Squares Estimation
Termination risk, multiple managers and mutual fund tournaments
 European Finance Review
, 2003
"... Abstract. This study analyzes the risktaking behavior of mutual funds in response to their relative performance over the 1992 to 1999 period. Our results show that managers of funds whose performance is closer to that of the top performing funds have greater incentives to increase their portfolios ..."
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Cited by 20 (0 self)
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Abstract. This study analyzes the risktaking behavior of mutual funds in response to their relative performance over the 1992 to 1999 period. Our results show that managers of funds whose performance is closer to that of the top performing funds have greater incentives to increase their portfolios' risk than managers at the top who exhibit a tendency to lock in their positions. The evidence suggests that termination risk imposes a constraint on the risk taking behavior of underperforming fund managers and the winner takes all phenomenon generates a strong incentive for the fund managers to be the top manager. We also analyze the difference in the risk taking behavior of funds managed by multiple managers and single managers.
2004): “Censored Regression Quantiles with Endogenous Regressors,” University of California at Berkeley mimeo
"... This paper develops a semiparametric method for estimation of the censored regression model when some of the regressors are endogenous (and continuously distributed) and instrumental variables are available for them. A “distributional exclusion ” restriction is imposed on the unobservable errors, ..."
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Cited by 16 (0 self)
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This paper develops a semiparametric method for estimation of the censored regression model when some of the regressors are endogenous (and continuously distributed) and instrumental variables are available for them. A “distributional exclusion ” restriction is imposed on the unobservable errors, whose conditional distribution is assumed to depend on the regressors and instruments only through a lowerdimensional “control variable, ” here assumed to be the difference between the endogenous regressors and their conditional expectations given the instruments. This assumption, which implies a similar exclusion restriction for the conditional quantiles of the censored dependent variable, is used to motivate a twostage estimator of the censored regression coefficients. In the first stage, the conditional quantile of the dependent variable given the instruments and the regressors is nonparametrically estimated, as are the firststage reducedform residuals to be used as control variables. The secondstage estimator is a weighted least squares regression of pairwise differences in the estimated quantiles on the corresponding differences in regressors, using only pairs of observations for which both estimated quantiles are positive (i.e., in the uncensored region) and the corresponding difference in estimated control variables is small. The paper gives the form of the asymptotic distribution for the proposed estimator, and discusses how it compares to similar estimators for alternative models.
Semi{Parametric Estimation of Simultaneous Equations with Limited Dependent Variables: A Case Study of Female Labor Supply
 Journal of Applied Econometrics
, 1995
"... This article introduces semiparametric methods for the estimation of simultaneous equation microeconometric models with index restrictions. The methods are motivated by some semiparametric minimum distance procedure, which unifies the estimation of both regressiontype models and simultaneous equat ..."
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Cited by 12 (1 self)
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This article introduces semiparametric methods for the estimation of simultaneous equation microeconometric models with index restrictions. The methods are motivated by some semiparametric minimum distance procedure, which unifies the estimation of both regressiontype models and simultaneous equation models in a general framework without emphasis on the construction of instrumental variables. The methods can be applied, for examples, to the estimation of simultaneous equation sample selection models, endogenous switching regression models, Amemniya's simultaneous equation limited dependent variables models, and simultaneous equation disequilibrium markets models. The equations can be nonlinear simultaneous equations. Both single equation and system estimation methods are introduced. Optimal weighting procedures are introduced. The estimators are niconsistent and asymptotically normal. For the estimation of nonparametric regression and some sample selection models where the variances of disturbances are also functions of same indices, the optimal weighted estimator attains Chamberlain's efficient bound for models with conditional moment restrictions. The weighted estimator is also shown to be optimal within a class of semiparametric instrumental variables estimators. 1991 JEL classification numbers: C14, C24, C34. Keywords:
A Note on Adapting Propensity Score Matching and Selection Models to Choice Based Samples.” IZA Discussion Paper No
, 2009
"... IZA is an independent nonprofit ..."