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Attrition Bias for the Estimation of the Average Treatment Effect of Job Training on Wage

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  • Sakamoto, Kazuyasu

Abstract

The study analyzes the attrition bias in estimating the average treatment effect of job training on wages. Endogenous and attrition biases were estimated using inverse probability weighting regression adjustment estimation（IPWRA,Wooldridge, 2007; 2010）and inverse probability weight. The results indicate,that both biases were overestimated. In comparison,however the former was initially higher,but the latter gradually increased. Finally,the Lee bounds（Lee,2009 ）and IPWRA estimations were compared,and it was found that the former value was larger. A possibie that Lee bounds were overestimated because they did not meet the assumption of randomized treatment.

Suggested Citation

  • Sakamoto, Kazuyasu, 2020. "Attrition Bias for the Estimation of the Average Treatment Effect of Job Training on Wage," Economic Review, Hitotsubashi University, vol. 71(1), pages 10-34, January.
    • Handle: RePEc:hit:ecorev:v:71:y:2020:i:1:p:10-34
    DOI: 10.15057/30961
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    More about this item

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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