In the presence of selection bias, traditional estimators of pseudo panel data are inconsistent. In this paper, the authors derive the conditions under which consistence is achieved in pseudo-panel estimation and propose a simple test of selection bias. Specifically, they propose a Wald test for...

The major contribution of this paper is ending a new and flexible way to measure the effects of selection on log-wages. In this context, we offer a general approach to performing decomposition analysis when selection effects are present. We call the difference between unconditional and...

The major contribution of this paper is finding a new and general approach to decomposing log-wage differentials when selection effects are present. We divide the observed log-wage differentials between two groups into 1) differentials in predicted log-wages computed using observed individual...