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A Control Function Approach To Estimating Dynamic Probit Models With Endogenous Regressors, With An Application To the Study of Poverty Persistence in China / Murtazashvili, Irina
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Murtazashvili, Irina
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Achieving Shared Growth.
- Debt Markets.
- Farm employment.
- Finance and Financial Sector Development.
- Health, Nutrition and Population.
- Household survey.
- Household surveys.
- Human development.
- Income.
- Indicators of poverty.
- Insurance.
- Insurance markets.
- Macroeconomics and Economic Growth.
- Poor.
- Poor households.
- Population Policies.
- Poverty line.
- Poverty persistence.
- Poverty Reduction.
- Poverty status.
- Regional Economic Development.
- Remote regions.
- Rural.
- Rural economy.
- Rural household.
- Rural migrants.
- Rural Poverty Reduction.
- Savings.
- Local Subjects:
- Achieving Shared Growth.
- Debt Markets.
- Farm employment.
- Finance and Financial Sector Development.
- Health, Nutrition and Population.
- Household survey.
- Household surveys.
- Human development.
- Income.
- Indicators of poverty.
- Insurance.
- Insurance markets.
- Macroeconomics and Economic Growth.
- Poor.
- Poor households.
- Population Policies.
- Poverty line.
- Poverty persistence.
- Poverty Reduction.
- Poverty status.
- Regional Economic Development.
- Remote regions.
- Rural.
- Rural economy.
- Rural household.
- Rural migrants.
- Rural Poverty Reduction.
- Savings.
- Physical Description:
- 1 online resource (41 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2010
- System Details:
- data file
- Summary:
- This paper proposes a parametric approach to estimating a dynamic binary response panel data model that allows for endogenous contemporaneous regressors. This approach is of particular value for settings in which one wants to estimate the effects of an endogenous treatment on a binary outcome. The model is next used to examine the impact of rural-urban migration on the likelihood that households in rural China fall below the poverty line. In this application, it is shown that migration is important for reducing the likelihood that poor households remain in poverty and that non-poor households fall into poverty. Furthermore, it is demonstrated that failure to control for unobserved heterogeneity would lead the researcher to underestimate the impact of migrant labor markets on reducing the probability of falling into poverty.
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