Bounding a Matching Estimator: The Case of a Norwegian Training Program
AbstractIn this paper we evaluate a Norwegian vocational training rehabilitation program by comparing employment outcomes of trainees and nonparticipants using nonexperimental data. A matching estimator is used to calculate the training effect for different subgroups of the sample. We demonstrate how bounding the matching estimator can be used to evaluate the intrinsic uncertainty of estimated training effects due to selection on unobserved individual characteristics. After adjustment for observed selection into training programs we find that the overall training effect is around six percentage points. This is mainly due to a high and significant effect for individuals with a low probability of program participation. After calculating upper and lower bounds on the test statistics used to test the hypothesis of no training effect we find that the overall effect is sensitive to unobserved selection. However, the result that the training effect is positive for individuals who are less likely to participate in a training program is not sensitive to selection bias. These individuals also have the lowest employment probabilities, which indicates potential harmful cream skimming in the Norwegian vocational rehabilitation sector.Copyright 2001 by Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.
Volume (Year): 63 (2001)
Issue (Month): 1 (February)
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Other versions of this item:
- Aakvik, A., 2001. "Bounding a Matching Estimator: The Case of a Norwegian Training Program," Norway; Department of Economics, University of Bergen 222, Department of Economics, University of Bergen.
- Aakvik, A., 1999. "Bounding a Marching Estimator: the Case of a Norwegian Training Program," Norway; Department of Economics, University of Bergen 0499, Department of Economics, University of Bergen.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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- Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
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