Abstract
Union endogeneity in relative wage equations has been long recognized. Recently, a new specification test, parsimonious in its computational requirements, has been advocated. This paper investigates the suitability of the test in a switching regression framework and critiques its most widely cited application.
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Addison, J.T., Portugal, P. The endogeneity of union status and the application of the hausman test. Journal of Labor Research 10, 437–441 (1989). https://doi.org/10.1007/BF02685334
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DOI: https://doi.org/10.1007/BF02685334