When the choice variable is continuous, selectivity bias can in principle be dealt with by a procedure first suggested by Garen (1984). However, work reported in this paper on the estimation of hedonic wage equations with compensation for dangerous jobs, where selectivity bias could arise...

The effect of new technology on relative demands for workers has been the subject of much research in economics. <link rid="b23">Krueger (1993)</link> and others have studied the impact of computers on earnings in the US and elsewhere. Such studies have been criticised for ignoring the possibility of bias due to...

This paper defines informal sector employment and decomposes the difference in earnings between formal and informal sector employees in Tajikistan for 2007. Using quantile regression decomposition technique proposed by JAE, 20:445-465, 2005 and considering self-selection of individuals into...

We use data from the Kazakhstan Labour Force Survey (KLFS) for the period 2006-2011 to examine factors that determine informality amongst self-employed men and women. In addition, the paper examines the response of informality propensities to the recent global crisis. The decomposition suggests...

This paper examines rates of return to schooling in Kazakhstan using OLS and instrumental variable (IV) methodologies. We use spouse's education and smoking as instruments. We find that spouse's education is a valid instrument and that conventional OLS estimates that assume the exogenous nature...

A range of alternative empirical definitions of informal activity have been employed in the literature. Choice of definition is often dictated by data availability. Different definitions may imply very different conceptual understandings of informality. This paper investigates the degree of...