Using data from Pakistan, we study the effect of family wealth on the utilization of child labor. We find evidence of a positive relationship between land wealth and child labor only for children in the upper quantiles of the distribution. We hypothesize that the so-called “wealth paradox”...

This paper proposes a simple method for testing whether non-compliance in experiments is ignorable, i.e., not jointly related to the treatment and the outcome. The approach consists of (i) regressing the outcome variable on a constant, the treatment, the assignment indicator, and the...

This paper proposes a test for linearity against exponential smooth transition models with endogenous right-hand-side variables: to the very best of our knowledge, this class of models is new to the literature. By Monte Carlo analysis the test is shown to have good finite sample properties.

A convenient and simple GMM procedure for estimating stochastic frontier models in the presence of endogenous regressors is proposed. Monte Carlo simulations show that the proposed estimator works very well in finite samples. We apply the proposed method to panel data of Norwegian dairy farms to...

This paper proposes a variable addition test for exogeneity in threshold regression models with potentially endogenous right-hand-side variables. An accurate Monte Carlo study is undertaken and the results show the good finite sample properties of the suggested test.

This paper investigates whether birth weight itself causes individuals’ future life chances. By using a sample of twins in Japan and controlling for the potential effects of genes and family backgrounds, we examine the effect of birth weight on later educational and economic outcomes. The most...