Endogenous Switching Regression Models with Limited Dependent Variables

Abstract

Social research often involves estimating the effects of a categorical treatment on a dependent outcome variable. Endogenous switching regression models are natural extensions of classical experimental designs, which allow tests of assumptions about the exogeneity of treatment effects from survey data. Endogenous switching regression applications are pervasive in the econometric literature and are becoming widely used by sociologists. However, sociologists have devoted somewhat less attention to endogenous switching models involving limited dependent variables. Switching regression models for continuous variables can be generalized to account for binary and censored dependent variables. These models are applied to estimate the effect of family structure on early family formation.