@techreport{NBERt0146,
 title = "A Two-Stage Estimator for Probit Models with Structural Group Effects",
 author = "George J. Borjas and Glenn T. Sueyoshi",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Technical Working Paper Series",
 number = "146",
 year = "1993",
 month = "November",
 URL = "http://www.nber.org/papers/t0146",
 abstract = {This paper outlines a two-stage technique for estimation and inference in probit models with structural group effects.  The structural group specification belongs to a broader class of random components models.  In particular, individuals in a given group share a common component in the specification of the conditional mean of a latent variable.  For a number of computational reasons, existing random-effects models are impractical for estimation and inference in this type of problem.  Our two-stage estimator provides an easily estimable alternative to the random effect specification.  In addition, we conduct a Monte Carlo simulation comparing the performance of alternative estimators, and find that the two-stage estimator is superior -- both in terms of estimation and inference -- to traditional estimators.},
}