Dear Statalist,
I wish to look at the public-private sector selection framework - i.e. a multinomial logit accounting for selectivity where 1=individual is in the public sector, 2=individual is in the private sector, 3=unemployed/not employed. A Heckman approach will let me take into account the selectivity. In the second stage, I will look at the wage equations of each sector using the first stage inverse Mill's Ratios which will give me results that have accounted for selection into a specific sector.
However, I also want to treat education as an endogenous variable.Has anyone come across such a model or a paper that looks at this, and what Stata command will be appropriate for it. I would greatly appreciate your help.
Thank yo!
I wish to look at the public-private sector selection framework - i.e. a multinomial logit accounting for selectivity where 1=individual is in the public sector, 2=individual is in the private sector, 3=unemployed/not employed. A Heckman approach will let me take into account the selectivity. In the second stage, I will look at the wage equations of each sector using the first stage inverse Mill's Ratios which will give me results that have accounted for selection into a specific sector.
However, I also want to treat education as an endogenous variable.Has anyone come across such a model or a paper that looks at this, and what Stata command will be appropriate for it. I would greatly appreciate your help.
Thank yo!
