Hi,
I am currently estimating a Mincerian equation to study the returns to higher education in India.
I guess this analysis often faces both endogeneity and selection bias issues, particularly since I am focusing on a sample of earning individuals.
While CMP incorporates features to address these problems separately, I was wondering if there is a way to estimate a model that simultaneously accounts for both selectivity and endogeneity. Any guidance or suggestions you could provide would be greatly appreciated.
I am currently estimating a Mincerian equation to study the returns to higher education in India.
Code:
cmp (log_earnings = higher_edu i.marital_status i.hhtype hhsize i.gender i.social_group i.sector i.religion i.year i.state) (higher_edu = parent_edu i.marital_status i.hhtype hhsize i.gender i.social_group i.sector i.religion i.year i.state), ind($cmp_cont $cmp_probit) vce(robust)
While CMP incorporates features to address these problems separately, I was wondering if there is a way to estimate a model that simultaneously accounts for both selectivity and endogeneity. Any guidance or suggestions you could provide would be greatly appreciated.
