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The Estimation of Wage Gains and Welfare Gains in Self-Selection Models
Open accessAbstract
In this paper we consider the basic self-selection model for the effects of education, training, unions, and other activities on wages. We show that past models have ignored 'heterogeneity of rewards' to the activity--i.e., differences across individuals in the rate of return to the activity--as a source of selection bias. We model such heterogeneity, show how its presence can be tested, and draw out its implications for the wage and welfare gains to the activity. An empirical application provides strong support for such heterogeneity.
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Cited by
Recent Developments in the Econometrics of Program Evaluation
Imbens, G. W., & Wooldridge, J. M. (2009) · Journal of Economic Literature · doi:10.1257/jel.47.1.5 · Cited by 4,926
Empirical Strategies in Labor Economics
Angrist, J. D., & Krueger, A. B. (1999) · Handbook of Labor Economics · doi:10.1016/s1573-4463(99)03004-7 · Cited by 1,628
Structural Equations, Treatment Effects, and Econometric Policy Evaluation1
Heckman, J. J., & Vytlacil, E. (2005) · Econometrica · doi:10.1111/j.1468-0262.2005.00594.x · Cited by 1,220
Using matching, instrumental variables and control functions to estimate economic choice models
Heckman, J., & Navarro-Lozano, S. (2004) · Review of Economics and Statistics · doi:10.1162/003465304323023660 · Cited by 768
Estimating Marginal Returns to Education
Carneiro, P., Heckman, J. J., & Vytlacil, E. J. (2011) · American Economic Review · doi:10.1257/aer.101.6.2754 · Cited by 612
Metadata
- Authors
- Bjorklund, A., & Moffitt, R.
- Venue
- The Review of Economics and Statistics
- Publisher
- JSTOR
- Published
- 1987-02
- Volume
- 69
- Issue
- 1
- Pages
- 42
- ISSN
- 0034-6535 (ISSN-L)
- OpenAlex
- W579986423
- Cited by
- 452
- References
- 0
- FWCI
- 11.13
- Type
- journal article
- Language
- en
- Open access
- green
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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.