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Nonparametric identification and estimation in a Roy model with common nonpecuniary returns

Publication ,  Journal Article
Bayer, P; Khan, S; Timmins, C
Published in: Journal of Business and Economic Statistics
April 1, 2011

We consider identification and estimation of a Roy model that includes a common nonpecuniary utility component associated with each choice alternative. This augmented Roy model has broader applications to many polychotomous choice problems in addition to occupational sorting. We develop a pair of nonparametric estimators for this model, derive asymptotics, and illustrate small-sample properties with a series of Monte Carlo experiments. We apply one of these models to migration behavior and analyze the effect of Roy sorting on observed returns to college education. Correcting for Roy sorting bias, the returns to a college degree are cut in half. This article has supplementary material online. © 2011 American Statistical Association.

Duke Scholars

Published In

Journal of Business and Economic Statistics

DOI

EISSN

1537-2707

ISSN

0735-0015

Publication Date

April 1, 2011

Volume

29

Issue

2

Start / End Page

201 / 215

Related Subject Headings

  • Econometrics
  • 49 Mathematical sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
  • 01 Mathematical Sciences
 

Citation

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MLA
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Bayer, P., Khan, S., & Timmins, C. (2011). Nonparametric identification and estimation in a Roy model with common nonpecuniary returns. Journal of Business and Economic Statistics, 29(2), 201–215. https://doi.org/10.1198/jbes.2010.08083
Bayer, P., S. Khan, and C. Timmins. “Nonparametric identification and estimation in a Roy model with common nonpecuniary returns.” Journal of Business and Economic Statistics 29, no. 2 (April 1, 2011): 201–15. https://doi.org/10.1198/jbes.2010.08083.
Bayer P, Khan S, Timmins C. Nonparametric identification and estimation in a Roy model with common nonpecuniary returns. Journal of Business and Economic Statistics. 2011 Apr 1;29(2):201–15.
Bayer, P., et al. “Nonparametric identification and estimation in a Roy model with common nonpecuniary returns.” Journal of Business and Economic Statistics, vol. 29, no. 2, Apr. 2011, pp. 201–15. Scopus, doi:10.1198/jbes.2010.08083.
Bayer P, Khan S, Timmins C. Nonparametric identification and estimation in a Roy model with common nonpecuniary returns. Journal of Business and Economic Statistics. 2011 Apr 1;29(2):201–215.

Published In

Journal of Business and Economic Statistics

DOI

EISSN

1537-2707

ISSN

0735-0015

Publication Date

April 1, 2011

Volume

29

Issue

2

Start / End Page

201 / 215

Related Subject Headings

  • Econometrics
  • 49 Mathematical sciences
  • 38 Economics
  • 35 Commerce, management, tourism and services
  • 15 Commerce, Management, Tourism and Services
  • 14 Economics
  • 01 Mathematical Sciences