Nonparametric Identification and Estimation in a Roy Model With Common Nonpecuniary Returns

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2011
Volume: 29
Issue: 2
Pages: 201-215

Authors (3)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider identification and estimation of a Roy model that includes a common nonpecuniary utility component associated with each choice alternative. This augmented Roy model has broader applications to many polychotomous choice problems in addition to occupational sorting. We develop a pair of nonparametric estimators for this model, derive asymptotics, and illustrate small-sample properties with a series of Monte Carlo experiments. We apply one of these models to migration behavior and analyze the effect of Roy sorting on observed returns to college education. Correcting for Roy sorting bias, the returns to a college degree are cut in half. This article has supplementary material online.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:29:y:2011:i:2:p:201-215
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-24