QUANTILE SELECTION MODELS WITH AN APPLICATION TO UNDERSTANDING CHANGES IN WAGE INEQUALITY

• 成果类型: Article
• 署名作者: Arellano, Manuel; Bonhomme, Stephane
• 署名单位: University of Chicago
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA14030
• 发表日期: 2017
• 页码: 1-28
• 关键词: instrumental variables; semiparametric estimation; relative wages; regression; distributions; inference; INDEPENDENCE; EMPLOYMENT; mobility; college

摘要

We propose a method to correct for sample selection in quantile regression models. Selection is modeled via the cumulative distribution function, or copula, of the percentile error in the outcome equation and the error in the participation decision. Copula parameters are estimated by minimizing a method-of-moments criterion. Given these parameter estimates, the percentile levels of the outcome are readjusted to correct for selection, and quantile parameters are estimated by minimizing a rotated check function. We apply the method to correct wage percentiles for selection into employment, using data for the UK for the period 1978-2000. We also extend the method to account for the presence of equilibrium effects when performing counterfactual exercises.