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Sharp Bounds and Testability of a Roy Model of STEM Major Choices

Bibliographic Data

ID10173251
AuthorsIsmaël Mourifié (0000-0002-6765-6288, University of Toronto), Marc Henry (0000-0003-2047-9058), Romuald Méango
Year2020
Volume128
Issue8
Pages3220-3283
Publication date2020-02-24
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/708724
OpenAlexW3006856757
LanguageEN
Citations received5
References cited77

We analyze the empirical content of the Roy model, stripped down to its essential features, namely sector specific unobserved heterogeneity and self-selection on the basis of potential outcomes. We characterize sharp bounds on the joint distribution of potential outcomes and testable implications of the Roy self-selection model under an instrumental constraint on the joint distribution of potential outcomes we call stochastically monotone instrumental variable (SMIV). We show that testing the Roy model selection is equivalent to testing stochastic monotonicity of observed outcomes relative to the instrument. We apply our sharp bounds to the derivation of a measure of departure from Roy self-selection to identify values of observable characteristics that induce the most costly misallocation of talent and sector and are therefore prime targets for intervention. Special emphasis is put on the case of binary outcomes, which has received little attention in the literature to date. For richer sets of outcomes, we emphasize the distinction between pointwise sharp bounds and functional sharp bounds, and its importance, when constructing sharp bounds on functional features, such as inequality measures. We analyze a Roy model of college major choice in Canada and Germany within this framework, and we take a new look at the under-representation of women in~STEM

Constraint (computer-aided design · Distribution (mathematics · Econometrics · Economics · Instrumental variable · Joint probability distribution · Mathematical economics · Monotone polygon · Monotonic function · Pointwise · Representation (politics · Selection (genetic algorithm · Statistics · Artificial Intelligence · Computer Science · Economic Policies and Impacts · Fiscal Policy and Economic Growth · Labor market dynamics and wage inequality · Mathematics

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Unique citing works5
Citations per year1
Citation span2021 - 2026 (6)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 5

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