Ismael Mourifie, Marc Henry, Romuald Meango
arXiv 26 Sep 2017 · Econometrics · publishedJournal of Political Economy (2020) · 5 citations (OpenAlex)
arXiv:1709.09284 · PDF · DOI · OpenAlex · Extracted main text
We analyze the empirical content of the Roy model, stripped down to its essential features, namely sector specific unobserved heterogeneity and self-selection on the basis of potential outcomes. We characterize sharp bounds on the joint distribution of potential outcomes and testable implications of the Roy self-selection model under an instrumental constraint on the joint distribution of potential outcomes we call stochastically monotone instrumental variable (SMIV). We show that testing the Roy model selection is equivalent to testing stochastic monotonicity of observed outcomes relative to the instrument. We apply our sharp bounds to the derivation of a measure of departure from Roy self-selection to identify values of observable characteristics that induce the most costly misallocation of talent and sector and are therefore prime targets for intervention. Special emphasis is put on the case of binary outcomes, which has received little attention in the literature to date. For richer sets of outcomes, we emphasize the distinction between pointwise sharp bounds and functional sharp bounds, and its importance, when constructing sharp bounds on functional features, such as inequality measures. We analyze a Roy model of college major choice in Canada and Germany within this framework, and we take a new look at the under-representation of women in STEM.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | James Heckman and Bo Honoré (1990) The empirical content of the roy model | 1.000 | 6 | 3 | 100% |
| 2 | Yu-Chin Hsu, Chu-Ahn Liu, and Xiaoxia Shi (2019) Testing generalized regression monotonicity | 1.000 | 6 | 3 | 100% |
| 3 | Alfred Galichon and Marc Henry (2011) Set identification in models with multiple equilibria self | 1.000 | 5 | 4 | 100% |
| 4 | Tim Bedford and Isaac Meilijson (1997) A characterization of marginal distributions of (possibly dependent) lifetime variables which right censor each other | 1.000 | 5 | 3 | 100% |
| 5 | Victor Chernozhukov, Simon Lee, and Adam Rosen (2013) Inference on intersection bounds | 0.928 | 4 | 4 | 100% |
| 6 | Richard Blundell, Amanda Gosling, Hidehiko Ichimura, and Costas Meghir (2007) Changes in the distribution of male and female wages accounting for employment composition using bounds | 0.874 | 5 | 2 | 100% |
| 7 | Philipp Eisenhauer, James Heckman, and Edward Vytlacil (2015) The generalized roy model and the cost-benefit analysis of social programs | 0.874 | 5 | 2 | 100% |
| 8 | James Heckman and Guilherme Sedlacek (1985) Heterogeneity, aggregation, and market wage functions: an empirical model of self-selection in the labor market | 0.843 | 3 | 3 | 100% |
| 9 | James Heckman and Guilherme Sedlacek (1990) Self-selection and the distribution of hourly wages | 0.843 | 3 | 3 | 100% |
| 10 | R Willis and Sherwin Rosen (1979) Education and self-selection | 0.811 | 4 | 2 | 100% |
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