Hi
I am trying to estimate the following model.
Y1= aX1 + bX2+ E.
Y1 is a binary variable.
X2 is also a binary variable.
X2 is endogenous.
I also have a sample selection problem.
Y1 is the employment status in 2011 for all those who are already employed in 2005. Y1 is a binary variable, it takes value 1 if a person is employed in 2011 and takes value 0 if a person is not employed in 2011.
My query:
I am not able to figure out how to build this model in stata.
The commands that I have come across so far:
ivregress: I cannot use it as my dependent variable is binary.
ivprobit: I cannot use it as my endogenous variable is binary, IVPROBIT assumes that the endogenous variable is continuous.
If I use the heckprobit command, It would take care of the sample selection problem. But how do I correct for endogenity with sample selection.
Is there any other command that I am not aware of in this discussion.
Thank you
I am trying to estimate the following model.
Y1= aX1 + bX2+ E.
Y1 is a binary variable.
X2 is also a binary variable.
X2 is endogenous.
I also have a sample selection problem.
Y1 is the employment status in 2011 for all those who are already employed in 2005. Y1 is a binary variable, it takes value 1 if a person is employed in 2011 and takes value 0 if a person is not employed in 2011.
My query:
I am not able to figure out how to build this model in stata.
The commands that I have come across so far:
ivregress: I cannot use it as my dependent variable is binary.
ivprobit: I cannot use it as my endogenous variable is binary, IVPROBIT assumes that the endogenous variable is continuous.
If I use the heckprobit command, It would take care of the sample selection problem. But how do I correct for endogenity with sample selection.
Is there any other command that I am not aware of in this discussion.
Thank you
