Identification Of Models Of The Labor Market

Date Added: Sep 2010
Format: PDF

This chapter discusses identification of common selection models of the labor market. The authors start with the classic Roy model and show how it can be identified with exclusion restrictions. The authors then extend the argument to the generalized Roy model, treatment effect models, duration models, search models, and dynamic discrete choice models. In all cases, key ingredients for identification are exclusion restrictions and support conditions. In this cpaper they have presented identification results for models of the labor market. The main issue in all of these models is the issue of sample selection bias.