Recently, the co-authored paper Distribution regression with censored selection by Associate Professor Zhang Hanghui from the Department of Econometrics, School of Economics, Shanghai University of Finance and Economics, has been formally published in Journal of Econometrics, a top-tier international economics journal.
Abstract
Chernozhukov, Fernández-Val, and Luo (2023, hereinafter CFL (2023)) studied a distribution regression model with sample selection governed by a binary selection mechanism. This paper develops identification and estimation for a semiparametric distribution regression model under a censored selection rule. Unlike CFL (2023), identification under censored selection does not require the standard outcome exclusion restriction, nor does it require excluding the level of the latent selection variable from the selection sorting function. We propose new semiparametric estimators and corresponding inference procedures for model parameters and related functionals. We apply our method to examine UK wage inequality over 1978–2000 using Family Expenditure Survey (FES) data. Our results show that: (i) the selection sorting exclusion and outcome exclusion restrictions adopted by CFL (2023) are rejected; (ii) women exhibit negative selection into employment at most quantiles, while men do not; (iii) unlike CFL (2023), our pattern of selection sorting effects provides no clear evidence for assortative matching or a glass ceiling in the UK labor market; (iv) latent gender wage gaps after correcting for selection bias amount to roughly 25%–50% of the estimates from CFL (2023) and are substantially smaller than raw observed wage gaps; (v) consistent with CFL (2023), we find strong evidence of gender discrimination in the UK labor market.
About the Author
Zhang Hanghui received his PhD in Economics from the Hong Kong University of Science and Technology. He is currently Associate Professor in the Department of Econometrics at the School of Economics, Shanghai University of Finance and Economics. His main research fields include theoretical microeconometrics, applied empirical economics and applied microeconomics. He has published several papers in leading journals such as Journal of Econometrics, Econometric Theory, Journal of Business & Economic Statistics, and Science China (Mathematics). He has presided over and participated in multiple projects funded by the National Natural Science Foundation of China.
