Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58223 
Year of Publication: 
2012
Series/Report no.: 
Economics Discussion Papers No. 2012-26
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
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.
Subjects: 
Repeated cross-section models
selectivity bias testing
human capital
JEL: 
C23
C52
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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