Wpm. Vijverberg, DUAL SELECTION CRITERIA WITH MULTIPLE ALTERNATIVES - MIGRATION, WORK STATUS, AND WAGES, International economic review, 36(1), 1995, pp. 159-185
This study develops and implements a new method to account for selecti
vity bias that results from a two-stage choice with multiple alternati
ves. The estimation method can handle any number of alternatives at ea
ch level, modeled under any distributional assumption, as long as one
is able to express the condition for selecting a particular alternativ
e at each level statistically in the form of a single equation. The te
chnique is demonstrated for a situation where people choose one of thr
ee regions and one of two work modes.