Estimation of semiparametric censored regression models: An application to changes in black-white earnings inequality during the 1960s

Kenneth Y. Chay, Bo E. Honoré

Research output: Contribution to journalReview article

25 Scopus citations

Abstract

Building on the work of Chay (1995), this study examines the impact of civil rights policies on black economic progress using individual-level panel data. Many earnings records are censored and the degree of censoring changed during the period of interest. Consequently, valid estimates of the program effects must account for this censoring. Maximum likelihood estimation can be used if the error terms of the model are identically normally distributed. We investigate the value of using weaker assumptions on the error process to estimate the laws impact. The analysis shows that there was significant black-white earnings convergence in the South during the 1960s. We also find that semiparametric estimation methods are informative in pinpointing which parts of the model are misspecified.

Original languageEnglish (US)
Pages (from-to)X-38
JournalJournal of Human Resources
Volume33
Issue number1
DOIs
StatePublished - Jan 1 1998

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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