Unobserved factors 

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Microsoft Word - discussion64.doc
... a variable (the instrument) that is correlated with studying abroad ( zi ) and not with the unobserved factors of the outcome variables ( ui ). if we only use the variation in studying abroad induced ... on unobserved factors. we do not know whether the variation in living abroad that is associated with the variation in studying abroad is caused by the variation in studying abroad or by unobserved ...
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Microsoft Word - cpbdoc113.doc
... , such as in flinn and heckman (1983). assume that transition probabilities depend on unobserved labour market conditions, and interpret eigenvectors of the transition matrix as equilibrium employment, ... to national rates, because any correlation between unemployment and inactivity may be due to unobserved factors that are not related to labour market conditions. 32 that current inactivity cannot ...
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