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| Main Authors: | , |
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| Format: | Preprint |
| Published: |
2025
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2502.05353 |
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| _version_ | 1866929703643774976 |
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| author | Kim, Dongwoo Lee, Young Jun |
| author_facet | Kim, Dongwoo Lee, Young Jun |
| contents | Sample selection is pervasive in applied economic studies. This paper develops semiparametric selection models that achieve point identification without relying on exclusion restrictions, an assumption long believed necessary for identification in semiparametric selection models. Our identification conditions require at least one continuously distributed covariate and certain nonlinearity in the selection process. We propose a two-step plug-in estimator that is root-n-consistent, asymptotically normal, and computationally straightforward (readily available in statistical software), allowing for heteroskedasticity. Our approach provides a middle ground between Lee (2009)'s nonparametric bounds and Honoré and Hu (2020)'s linear selection bounds, while ensuring point identification. Simulation evidence confirms its excellent finite-sample performance. We apply our method to estimate the racial and gender wage disparity using data from the US Current Population Survey. Our estimates tend to lie outside the Honoré and Hu bounds. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2502_05353 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Point-Identifying Semiparametric Sample Selection Models with No Excluded Variable Kim, Dongwoo Lee, Young Jun Econometrics Sample selection is pervasive in applied economic studies. This paper develops semiparametric selection models that achieve point identification without relying on exclusion restrictions, an assumption long believed necessary for identification in semiparametric selection models. Our identification conditions require at least one continuously distributed covariate and certain nonlinearity in the selection process. We propose a two-step plug-in estimator that is root-n-consistent, asymptotically normal, and computationally straightforward (readily available in statistical software), allowing for heteroskedasticity. Our approach provides a middle ground between Lee (2009)'s nonparametric bounds and Honoré and Hu (2020)'s linear selection bounds, while ensuring point identification. Simulation evidence confirms its excellent finite-sample performance. We apply our method to estimate the racial and gender wage disparity using data from the US Current Population Survey. Our estimates tend to lie outside the Honoré and Hu bounds. |
| title | Point-Identifying Semiparametric Sample Selection Models with No Excluded Variable |
| topic | Econometrics |
| url | https://arxiv.org/abs/2502.05353 |