Arbeitspapier

Consistent estimation of pseudo panels in the presence of selection bias

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In the presence of selection bias, traditional estimators of pseudo panel data are inconsistent. In this paper, the authors derive the conditions under which consistence is achieved in pseudo-panel estimation and propose a simple test of selection bias. Specifically, they propose a Wald test for the null hypothesis that there is no selection bias. Under rejection of the null hypothesis, the authors can consistently estimate pseudo-panel parameters. They use cross sections and pseudo-panel regressions to test for selection bias and estimate the returns to education in Colombia. The authors corroborate the existence of selection bias and find that returns to education are around twenty percent.

Language: Englisch

Bibliographic citation: Series: Economics Discussion Papers ; No. 2012-26

Classification: Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Model Evaluation, Validation, and Selection

Subject: Repeated cross-section models
selectivity bias testing
human capital
Panel
Schätztheorie
Auswahl
Bias
Theorie

Event: Geistige Schöpfung

(who): Mora Rodriguez, Jhon James
Muro, Juan

Event: Veröffentlichung

(who): Kiel Institute for the World Economy (IfW)

(where): Kiel

(when): 2012

Handle: http://hdl.handle.net/10419/58223

Last update: 10.03.2025, 11:41 AM CET

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Object type

Arbeitspapier

Associated

Mora Rodriguez, Jhon James
Muro, Juan
Kiel Institute for the World Economy (IfW)

Time of origin

2012

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