IMMIGRATION POLICY AND THE AGRICULTURAL LABOR MARKET: THE EFFECT ON JOB DURATION



μi


σε


μj-1


σε


μj-1


σε

σε


Note that we can use the result of the ordered probit model in the first stage for


μj - x1α


and


σε


Also note that μ-1 = -∞, μ3 = ∞ from the assumption of normal distribution. In the
second stage of this Heckman type two-stage method, we estimate equation (2) below by ordinary

least squares with only completed spells.

(2)


ln t = z β + Pσ jλij + e = z β + βjλij + eij

We can also show that the conditional variance of the log of the duration would be

var[ln t. | ln t. is observed] = σjI1 - P ββ ],

where

I °ε J


μ1


• ʌ

- χ α

σε   J

_


' X
μ1 -1- x α


σε   J


(

2xa

σε


μj


I σε J


C • A
,. -
xlα I
Φ —
I

I σε J


μ1 -1


σε   J


. - xiα I

Φ —l- I

V σε J


Then a consistent estimator of σ2j is given by σj2


= [ei2 + /^λ δl^ ]/nj. We can obtain the
i=1

л    Λ

estimator of the asymptotic covariance matrix for [βj, βλ ] by substituting these results in the
j j

formulation in Greene (2003).



More intriguing information

1. Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force
2. The name is absent
3. Towards a Mirror System for the Development of Socially-Mediated Skills
4. The name is absent
5. How do investors' expectations drive asset prices?
6. Testing Hypotheses in an I(2) Model with Applications to the Persistent Long Swings in the Dmk/$ Rate
7. An Investigation of transience upon mothers of primary-aged children and their school
8. The name is absent
9. Nonlinear Production, Abatement, Pollution and Materials Balance Reconsidered
10. The role of statin drugs in combating cardiovascular diseases