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“Treatment Evaluation in the Case of Interaction Within Markets”

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Author Info

  • Marc FERRACCI

    (Crest)

  • Grégory JOLIVET

    (Crest)

  • Gerard J van den Berg

    (Crest)

Abstract

We extend the standard evaluation framework to allow for interactions betweenindividuals within segmented markets. An individual's outcome depends not only onthe assigned treatment status but also on (features of) the distribution of the assignedtreatments in his market. To evaluate how the distribution of treatments within amarket causally affects the average effect within the market, averaged over the fullpopulation, we develop an identification and estimation method in two steps. The firstone focuses on the distribution of the treatment within markets and betweenindividuals and the second step addresses the distribution of the treatment betweenmarkets. We apply our method to data on training programs for unemployed workersin France. We use a rich administrative register of unemployment and training spellsas well as the information on local labor demand that is used by unemploymentagencies to allocate training programs. The results show that the average treatmenteffect on the employment rate causally decreases with respect to the proportion oftreated in the market. Our analysis accounts for unobserved heterogeneity betweenmarkets (using the longitudinal dimension of the data) and, in a robustness check,between individuals.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2009-22.

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Length: 41
Date of creation: 2009
Date of revision:
Handle: RePEc:crs:wpaper:2009-22

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Cited by:
  1. Gautier, Pieter & Muller, Paul & van der Klaauw, Bas & Rosholm, Michael & Svarer, Michael, 2012. "Estimating Equilibrium Effects of Job Search Assistance," IZA Discussion Papers 6748, Institute for the Study of Labor (IZA).
  2. Blasco, Sylvie & Pertold-Gebicka, Barbara, 2012. "Employment Policies, Hiring Practices and Firm Performance," IZA Discussion Papers 7013, Institute for the Study of Labor (IZA).
  3. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 531-580.
  4. Ronald Wolthoff, 2013. "It's About Time: Implications of the Period Length in an Equilibrium Search Model," Working Papers tecipa-476, University of Toronto, Department of Economics.
  5. Pascal Michaillat & Emmanuel Saez & Camille Landais, 2011. "Optimal Unemployment Insurance over the Business Cycle," 2011 Meeting Papers 124, Society for Economic Dynamics.
  6. Rafael Lalive & Camille Landais & Josef Zweimüller, 2013. "Market Externalities of Large Unemployment Insurance Extension Programs," NRN working papers 2013-12, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  7. Pieter Gautier & Paul Muller & Bas van der Klaauw & Michael Rosholm & Michael Svarer, 2012. "Estimating Equilibrium Effects of Job Search Assistance," Tinbergen Institute Discussion Papers 12-071/3, Tinbergen Institute.

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