This paper explores an algebraic relationship between two types of coefficients for a regression with several predictors and an additive binary group variable. In a general regression, the regression coefficients are allowed to be group-specific, the restricted regression imposes constant...

Traditional tools of welfare economics identify the envy-related welfare loss from conspicuous consumption only under very strong assumptions. Measured income and life satisfaction offers an alternative for estimating such consumption externalities. The approach is developed in the context of...

The bivariate probit model is frequently used for estimating the effect of an endogenous binary regressor (the "treatment") on a binary health outcome variable. This paper discusses simple modifications that maintain the probit assumption for the marginal distributions while introducing...

This paper explores an algebraic relationship between two types of coefficients for a regression with several predictors and a group structure. In a general regression, the regression coefficients are allowed to be group-specific, the restricted regression imposes constant coefficients. The key...

Summary The common estimator for relative adjusted wage differentials based on dummy variables in loglinear regressions is inconsistent in the presence of group-specific heteroskedasticity. The direction and magnitude of the bias are derived. At the same time, a heteroskedasticity-consistent...

The apprenticeship system is the most important source of formal post‐secondary training in Germany. Using German register data – the IAB Employment Sample – it is found that apprentices staying with their training firm after graduation have a longer first‐job durations but not higher...