Dual Selection Criteria with Multiple Alternatives: Migration, Work Status, and Wages

摘要

The study develops and implements a new method to account for selectivity bias that results from a two-stage choice with multiple alternatives. The estimation method can handle any number of alternatives at each level, modeled under any distributional assumption. However, at each level one must be able to express the condition for selecting a particular alternative in a single equation. The technique was demonstrated for a situation where people choose one of three regions and one of two work modes. (Copyright (c) 1991 The International Bank for Reconstruction and Development/The World Bank.)