Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 716: Nonseparable Sample Selection Models with Censored Selection Rules

Ivan Fernandez-Val, Aico van Vuuren () and Francis Vella
Additional contact information
Ivan Fernandez-Val: Boston University
Aico van Vuuren: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O.Box 640, SE 40530 GÖTEBORG, Sweden
Francis Vella: Georgetown University

Abstract: We consider identification and estimation of nonseparable sample selection models with censored selection rules. We employ a control function approach and discuss different objects of interest based on(1)local effects conditional on the control function, and (2)global effects obtained from integration over ranges of values of the control function. We provide conditions under which these objects are appropriate for the total population. We also present results regarding the estimation of counterfactual distributions. We derive conditions for identification for these different objects and suggest strategies for estimation. We also provide the associated asymptotic theory.These strategies are illustrated in an empirical investigation of the determinants of female wages and wage growth in the United Kingdom.

Keywords: Sample selection; nonseparable models; control function; quantile and distribution regression

JEL-codes: C14; C21; C24

51 pages, January 2018

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