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Distribution Regression with Censored Selection

Ivan Fernandez-Val, Seoyun Hong

arXiv 16 May 2025 · Econometrics

arXiv:2505.10814 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a distribution regression model with a censored selection rule, offering a semi-parametric generalization of the Heckman selection model. Our approach applies to the entire distribution, extending beyond the mean or median, accommodates non-Gaussian error structures, and allows for heterogeneous effects of covariates on both the selection and outcome distributions. By employing a censored selection rule, our model can uncover richer selection patterns according to both outcome and selection variables, compared to the binary selection case. We analyze identification, estimation, and inference of model functionals such as sorting parameters and distributions purged of sample selection. An application to labor supply using data from the UK reveals different selection patterns into full-time and overtime work across gender, marital status, and time. Additionally, decompositions of wage distributions by gender show that selection effects contribute to a decrease in the observed gender wage gap at low quantiles and an increase in the gap at high quantiles for full-time workers. The observed gender wage gap among overtime workers is smaller, which may be driven by different selection behaviors into overtime work across genders.

Citation extraction

36
references
55
in-text mentions
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distinct cited
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Most heavily cited references

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.

ReferenceIntensityMentionsSectionsMain text
1Maasoumi, E. and L. Wang (2019) The gender gap between earnings distributions0.73732100%
2Blinder, A. S (1973) Wage discrimination: reduced form and structural estimates0.64422100%
3Kitagawa, E. M (1955) Components of a difference between two rates0.64422100%
4Mulligan, C. B. and Y. Rubinstein (2008) Selection, investment, and women's relative wages over time0.64422100%
5Oaxaca, R (1973) Male-female wage differentials in urban labor markets0.64422100%
6Blundell, R., H. Reed, and T. M. Stoker (2003) Interpreting aggregate wage growth: The role of labor market participation0.58531100%
7Blundell, R., A. Gosling, H. Ichimura, and C. Meghir (2007) Changes in the distribution of male and female wages accounting for employment composition using bounds0.58531100%
8van der Vaart, A. W. and J. A. Wellner (1996) Weak Convergence and Empirical Processes0.5112250%
9Arellano, M. and S. Bonhomme (2017) Quantile selection models with an application to understanding changes in wage inequality0.51121100%
10Chen, S., N. Liu, H. Zhang, and Y. Zhou (2024) Estimation of wage inequality in the UK by quantile regression with censored selection0.51121100%

Showing the top 10 of 36 scored citations.