Suppose you're modeling the probability of being employed (call it P(E = 1)) and you identify there'se a selection going on entering the labor force. So you model if through heckprobit, for example:
heckprobit employed age agesq education educationsq, sel(laborforce = age agesq education educationsq children married)
Then you predict the conditional probability:
predict pconditional, pcond
What is the difference between pconditional and the probability below:
probit employed age agesq education educationsq if laborforce == 1
predict phat
Shouldn't they be very similar?
And another question:
Heckprobit gives you the possibility of estimating p10, i.e. the probability of being employed AND out of the labor force. How is that possible?
Thanks in advance
heckprobit employed age agesq education educationsq, sel(laborforce = age agesq education educationsq children married)
Then you predict the conditional probability:
predict pconditional, pcond
What is the difference between pconditional and the probability below:
probit employed age agesq education educationsq if laborforce == 1
predict phat
Shouldn't they be very similar?
And another question:
Heckprobit gives you the possibility of estimating p10, i.e. the probability of being employed AND out of the labor force. How is that possible?
Thanks in advance