Sample Selection Models in R: Package sampleSelection

This paper describes the implementation of Heckman-type sample selection models in R. We discuss the sample selection problem as well as the Heckman solution to it, and argue that although modern econometrics has non- and semiparametric estimation methods in its toolbox, Heckman models are an integral part of the modern applied analysis and econometrics syllabus. We describe the implementation of these models in the package sampleSelection and illustrate the usage of the package on several simulation and real data examples. Our examples demonstrate the effect of exclusion restrictions, identification at infinity and misspecification. We argue that the package can be used both in applied research and teaching.

Sample Selection Models in R: Package sampleSelection

This paper describes the implementation of Heckman-type sample selection models in R. We discuss the sample selection problem as well as the Heckman solution to it, and argue that although modern econometrics has non- and semiparametric estimation methods in its toolbox, Heckman models are an integral part of the modern applied analysis and econometrics syllabus. We describe the implementation of these models in the package sampleSelection and illustrate the usage of the package on several simulation and real data examples. Our examples demonstrate the effect of exclusion restrictions, identification at infinity and misspecification. We argue that the package can be used both in applied research and teaching

Language Skills and Social Integration: Ethnic Disparities in Bilingual Economy

We analyze the relationship between the local language skills and immigrant income in a largely bilingual economy, Estonia. We show that the official language matters little in the private sector, and at the upper end of the income distribution. This is in a striking contrast to what has been found in the literature for single-language dominated economies. Our results point toward importance of co-worker discrimination, possibly through the more subtle aspects of language, or through access to the social networks. This outcome stresses the need of social integration of minorities, and suggest that this does not necessarily happen through the labor market

Does an increase in unemployment income lead to longer unemployment spells? Evidence using Danish unemployment assistance data

Danish unemployment assistance depends on age; it increases by 70% when unemployed individuals turn 25. This feature is used to identify the impact of income on the unemployment-to-employment hazard rate. A mixed proportional hazard framework based on a 10% representative Danish registry data set is used. The results indicate that the income effect for females is negative and significant, corresponding to an income elasticity of -0.4. The effect for males is positive but insignifcant.welfare benefts, incentive effect, unemployment duration