Assessing the External Validity of an Experimental Wage Subsidy
AbstractIn Canada, a policy aiming at helping single parents on social assistance become self-reliant was implemented on an experimental basis. The Self-Sufficiency Entry Effects Demonstration randomly selected a sample of 4,134 single parents who had applied for welfare between January 1994 and March 1995. It turned out only 3,315 took part in the experiment despite a 50% chance of receiving a generous, time-limited, earnings supplement conditional on finding a full-time job and leaving income assistance within a year. The purpose of this paper is to determine whether a non-response rate of 20% is likely to harm the external validity of the experiment. We compare the estimated impact of the program using experimental data only to that obtained using additional data on individuals not taking part in the experiment. We find strong evidence of non-response bias in the data. When we correct for the bias, we find that estimates that rely on experimental data only significantly underestimate the true impact of the program.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (2008)
Issue (Month): 91-92 ()
Other versions of this item:
- Kamionka, Thierry & Lacroix, Guy, 2005. "Assessing the External Validity of an Experimental Wage Subsidy," IZA Discussion Papers 1508, Institute for the Study of Labor (IZA).
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
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- Guy Lacroix & Marie-Ève Brouard, 2011.
"Work Absenteeism Due to a Chronic Disease,"
CIRANO Working Papers
- Lacroix, Guy & Brouard, Marie-Ève, 2011. "Work Absenteeism Due to a Chronic Disease," IZA Discussion Papers 5560, Institute for the Study of Labor (IZA).
- Guy Lacroix & Marie-Ève Brouard, 2011. "Work Absenteeism Due to a Chronic Disease," Cahiers de recherche 1108, CIRPEE.
- Lacroix, G; & Brouard M-E;, 2011. "Work Absenteeism Due to a Chronic Disease," Health, Econometrics and Data Group (HEDG) Working Papers 11/15, HEDG, c/o Department of Economics, University of York.
- Bitler, Marianne P. & Gelbach, Jonah B. & Hoynes, Hilary W., 2008.
"Distributional impacts of the Self-Sufficiency Project,"
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Elsevier, vol. 92(3-4), pages 748-765, April.
- Hilary W. Hoynes & Marianne P Bitler & Jonah B. Gelbach, 2005. "Distributional Impacts of the Self-Sufficiency Project," Working Papers 530, University of California, Davis, Department of Economics.
- Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2005. "Distributional Impacts of the Self-Sufficiency Project," NBER Working Papers 11626, National Bureau of Economic Research, Inc.
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