Abstract
This paper modifies and uses the semiparametric methods of Ichimura and Lee (1991) on standard cross-section data to decompose the effect of disability on labor force participation into a demand and a supply effect. It shows that straightforward use of Ichimura and Lee leads to meaningless results while imposing monotonicity on the unknown function leads to substantial results. The paper finds that supply effects dominate the demand effects of disability.
| Original language | English |
|---|---|
| Pages (from-to) | 49-70 |
| Number of pages | 22 |
| Journal | Journal of Econometrics |
| Volume | 71 |
| Issue number | 1-2 |
| DOIs | |
| State | Published - 1996 |
Keywords
- Disability
- Isotonic regression
- Labor force participation
- Semiparametric estimation
- Wage equation
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