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15Two issues arise in the specification of equation (9).
In fact, we joint estimate entrepreneurship and occupational choices, treating academic achievement as given, using a bivariate probit specification of equation (3) and (4).
Thus, the aggregation of J firm effects into K industry effects, weighted so as to be representative of individuals, can be accomplished directly by the specification of equation (6).
Each of scenarios (i) to (xi) relates to a different but realistic specification of equation (1).
Because this assumption may not hold, we also estimate a fixed effects specification of equation (1) (in which β0, υ i and all time-invariant parameters are absorbed by a new constant a i ).
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Five specifications of Equation 1 appear in Table 5.
The various specifications of equation (1) that we estimate – i.e., restricted and unrestricted as well as with and without additional controls – are reported in Table 3.
We estimated four different specifications of the outcome equation (yield equation) corresponding to each specification of criterion equation on the basis of various measures of education variable.
Second, we pool the data of males and females and estimate specifications of Equations (2) and (4) that include a dummy for males and an interaction between birth cohort 1959 and males.
We found that the result of our regression did vary with the specification of the equation, the time period of estimation, and the methodology of estimation.
Someone with a health problem (H = 1) enjoys the same welfare as someone without these problems (H = 0) if: (0.3) W *(LogY, H i = 0, X i ) = W *(LogY i + LogCIV i, H i = 1, X i ) Substitution in the specification of the equation for well-being above, this translates into: (0.4) C I V i = exp (− β 2 β 1 ) Y i − Y i This gives the CIV as the increase in annual net household income.
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