Control Function Approach for Partly Ordered Endogenous Treatments: Military Rank Premium in Wage

Young Min Ju, Myoung-jae Lee

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

In treatment effect analysis, there are many cases where the treatment of interest is ordered (e.g. general-education years or medicine doses) and the control treatment is not zero, but a different type of treatment (a vocational training or a surgery). We develop an approach to find effects of partly ordered treatments, while correcting for possible treatment endogeneity with nearly parametric control functions. We use this control function approach, along with its supplementary version, to estimate effects of military ranks (ordered treatments) on wage relative to non-veteran status (control treatment) with the Wisconsin Longitudinal Study data. In our empirical analysis, the military rank effects differ much: officer has large positive effects, but enlisted ranks have small or no effects.

Original languageEnglish
JournalOxford Bulletin of Economics and Statistics
DOIs
Publication statusAccepted/In press - 2017

Fingerprint

Wages
Control Function
premium
Military
wage
Endogeneity
vocational education
general education
Longitudinal Study
Empirical Analysis
surgery
Treatment Effects
Control function
Premium
longitudinal study
Medicine
Surgery
Dose
medicine
Zero

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

Cite this

@article{5f1b8c9c7b9f414f80a65c18dc9eafa8,
title = "Control Function Approach for Partly Ordered Endogenous Treatments: Military Rank Premium in Wage",
abstract = "In treatment effect analysis, there are many cases where the treatment of interest is ordered (e.g. general-education years or medicine doses) and the control treatment is not zero, but a different type of treatment (a vocational training or a surgery). We develop an approach to find effects of partly ordered treatments, while correcting for possible treatment endogeneity with nearly parametric control functions. We use this control function approach, along with its supplementary version, to estimate effects of military ranks (ordered treatments) on wage relative to non-veteran status (control treatment) with the Wisconsin Longitudinal Study data. In our empirical analysis, the military rank effects differ much: officer has large positive effects, but enlisted ranks have small or no effects.",
author = "Ju, {Young Min} and Myoung-jae Lee",
year = "2017",
doi = "10.1111/obes.12199",
language = "English",
journal = "Oxford Bulletin of Economics and Statistics",
issn = "0305-9049",
publisher = "Wiley-Blackwell Publishing Ltd",

}

TY - JOUR

T1 - Control Function Approach for Partly Ordered Endogenous Treatments

T2 - Military Rank Premium in Wage

AU - Ju, Young Min

AU - Lee, Myoung-jae

PY - 2017

Y1 - 2017

N2 - In treatment effect analysis, there are many cases where the treatment of interest is ordered (e.g. general-education years or medicine doses) and the control treatment is not zero, but a different type of treatment (a vocational training or a surgery). We develop an approach to find effects of partly ordered treatments, while correcting for possible treatment endogeneity with nearly parametric control functions. We use this control function approach, along with its supplementary version, to estimate effects of military ranks (ordered treatments) on wage relative to non-veteran status (control treatment) with the Wisconsin Longitudinal Study data. In our empirical analysis, the military rank effects differ much: officer has large positive effects, but enlisted ranks have small or no effects.

AB - In treatment effect analysis, there are many cases where the treatment of interest is ordered (e.g. general-education years or medicine doses) and the control treatment is not zero, but a different type of treatment (a vocational training or a surgery). We develop an approach to find effects of partly ordered treatments, while correcting for possible treatment endogeneity with nearly parametric control functions. We use this control function approach, along with its supplementary version, to estimate effects of military ranks (ordered treatments) on wage relative to non-veteran status (control treatment) with the Wisconsin Longitudinal Study data. In our empirical analysis, the military rank effects differ much: officer has large positive effects, but enlisted ranks have small or no effects.

UR - http://www.scopus.com/inward/record.url?scp=85021340631&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85021340631&partnerID=8YFLogxK

U2 - 10.1111/obes.12199

DO - 10.1111/obes.12199

M3 - Article

AN - SCOPUS:85021340631

JO - Oxford Bulletin of Economics and Statistics

JF - Oxford Bulletin of Economics and Statistics

SN - 0305-9049

ER -