Estimation of the female labor supply models by Heckman’s two-step estimator and the maximum likelihood estimator

The female labor supply models have been widely used in labor economics. The models are usually estimated by Heckman’s two-step estimator. However, Heckman’s two-step estimator often performs poorly. This paper considers an estimation of the models by the maximum likelihood method. An algorithm which makes calculation of the maximum likelihood estimator (MLE) possible is proposed. The finite sample properties are compared using Monte Carlo experiments.

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Year of publication:	2004
Authors:	Nawata, Kazumitsu
Published in:	Mathematics and Computers in Simulation (MATCOM). - Elsevier, ISSN 0378-4754. - Vol. 64.2004, 3, p. 385-392
Publisher:	Elsevier
Subject:	Female labor supply \| Sample selection bias \| Maximum likelihood estimator \| Heckman’s two-step estimator

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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