{smcl} {* *! version 1.0.0 21Jul2010} {...} {cmd: help neoclassical} {hline} {title: Title} {phang} {bf: neoclassical -- estimates neoclassical education transitions model} {title: Syntax} {cmd: neoclassical} Y1 "TC1" "TV1Names" "Exclusions" Y1Independent Y2 "TC1" "TV2Names" Y2Independent deff [cluster] ; {title: Description} {pstd} {cmd:neoclassical} estimates a bivariate probit model with selection with coefficients re-scaled to facilitate cross-equation testing for equality. It is termed neoclassical for it is a variant of the neoclassical education transitions framework proposed in Lucas, Fucella, and Berends (2011). Note that the first transition appears in the second equation in the output. Yet, in specifying the model the temporally earlier transition is always regarded as the first transition. The estimates are the re-scaled coefficients and the appropriate standard errors. Any subsequent statistical tests will use this second set of results. A related command, {help retroclassical}, estimates a neoclassical education transitions model while fixing the cross-equation error variance at zero. This provides the result one would obtain by calibrating the coefficients across transitions, yet not accounting for selection. Thus, it is a mid-way point between a neoclassical approach and the classical approach. {phang} {opt Y1} is the outcome variable for the first transition--this is the selection equation for the second transition {phang} {opt "TC1"} contains the list of time constant variables; these should be common across the first and second equations. The set of variables should be in quotes both times they are listed, and in the same exact order. {phang} {opt "TV1Names"} contains the names of the variables that have specific values for the first transition (and possibly different values for the second transition). The set of variables should be in quotes {phang} {opt "Exclusions"} are those variables in the selection equation that are not in the equation for the second transition. An explicit category is made for these variables to reinforce the necessity of having such variables to identify the selection process. The set of variables should be in quotations, even if it is only 1 variable {phang} {opt Y1Independent} is the total number of independent variables in the first equation {phang} {opt Y2} is the outcome variable for the second transition--this is the last of the two transitions {phang} {opt "TV2Names"} contains the variables that have specific values for the second transition (and possibly different values for the first transition). These variables should be in quotes {phang} {opt Y2Independent} is the total number of independent variables in the second transition equation {phang} {opt deff} MUST be supplied. It is a design effect and must be listed as 1.0 if there is no design effect. {phang} {opt cluster} is a variable you may use to obtain Huber-White standard errors. This is optional. {phang} {title: Also see} {psee} Lucas, Samuel R., Phillip N. Fucella, and Mark Berends. 2011. "Neo-Classical Education Transitions: A Corrected Tale for Three Cohorts." Research in Social Stratification and Mobility.