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Bounding a Matching Estimator: The Case of a Norwegian Training Program

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  • Aakvik, Arild

Abstract

In 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 Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 63 (2001)
Issue (Month): 1 (February)
Pages: 115-43

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Handle: RePEc:bla:obuest:v:63:y:2001:i:1:p:115-43

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Cited by:
  1. Pao-Li Chang & Myoung-Jae Lee, 2007. "The WTO Trade Effect," Working Papers 06-2007, Singapore Management University, School of Economics.
  2. Dillon, Andrew, 2011. "The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali," World Development, Elsevier, vol. 39(12), pages 2165-2175.
  3. Chowa, Gina A.N. & Elliott III, William, 2011. "An asset approach to increasing perceived household economic stability among families in Uganda," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 81-87, February.
  4. 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.
  5. Hujer, Reinhard & Thomsen, Stephan L., 2010. "How do the employment effects of job creation schemes differ with respect to the foregoing unemployment duration?," Labour Economics, Elsevier, vol. 17(1), pages 38-51, January.
  6. Aakvik, Arild & Salvanes, Kjell G & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," CEPR Discussion Papers 4088, C.E.P.R. Discussion Papers.
  7. Emil Mihaylov, 2011. "Evaluation of Subsidized Employment Programs for Long-Term Unemployed in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 136-167.
  8. Chowa, Gina & Ansong, David, 2010. "Youth and savings in AssetsAfrica," Children and Youth Services Review, Elsevier, vol. 32(11), pages 1591-1596, November.
  9. Johar, Meliyanni, 2009. "The impact of the Indonesian health card program: A matching estimator approach," Journal of Health Economics, Elsevier, vol. 28(1), pages 35-53, January.
  10. Gaigne, Carl & Latouche, Karine & Turolla, Stephane, 2012. "Vertical Ownership and Trade: Firm-level evidence from France," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125020, Agricultural and Applied Economics Association.
  11. M. Shahe Emran & Stephen C. Smith & Virginia Robano, 2009. "Assessing the Frontiers of Ultra-Poverty Reduction: Evidence from CFPR/TUP, an Innovative Program in Bangladesh," Working Papers 2009-06, The George Washington University, Institute for International Economic Policy.
  12. Dasgupta, Basab & Ajwad, Mohamed Ihsan, 2011. "Income shocks reduce human capital investments : evidence from five east European countries," Policy Research Working Paper Series 5926, The World Bank.
  13. Jesmin, Shammima & Thind, Amardeep & Sarma, Sisira, 2012. "Does team-based primary health care improve patients’ perception of outcomes? Evidence from the 2007–08 Canadian Survey of Experiences with Primary Health," Health Policy, Elsevier, vol. 105(1), pages 71-83.

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