Suchergebnisse

It is beneficial to observe that popular model selection criteria for the linear model are equivalent to penalized versions of R2. Let PR2 refer to any one of these model selection criteria. Then PR2 serves the dual purpose of selecting the model and summarizing the resulting fit subject to the penalty function. Furthermore, it is straightforward to extend the logic of PR2 to instrumental variables estimation and the non‐parametric selection of regressors. For two‐stage least squares estimation, a simulation study investigates the finite‐sample performance of PR2 to select the correct model in cases of either strong or weak instruments.

A sample of Detroit area firms in 1972 is used to determine the effects of affirmative action requirements and other firm characteristics on the recruitment and hiring of women and black men. The results suggest that affirmative action changed firm hiring practices with respect to black males. The unique data set also allows for a test of Becker's well-known hypothesis that customer prejudice may influence the hiring of blacks or females.