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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. Sylvie Blasco & Barbara Pertold-Gebicka, 2012. "Employment Policies, Hiring Practices and Firm Performance," Working Papers 2012-27, Centre de Recherche en Economie et Statistique.
  2. Landais, Camille & Michaillat, Pascal & Saez, Emmanuel, 2010. "Optimal Unemployment Insurance over the Business Cycle," CEPR Discussion Papers 8132, C.E.P.R. Discussion Papers.
  3. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2012. "Do Labor Market Policies Have Displacement Effects? Evidence from a Clustered Randomized Experiment," NBER Working Papers 18597, National Bureau of Economic Research, Inc.
  4. 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.
  5. 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.
  6. Lalive, Rafael & Landais, Camille & Zweimüller, Josef, 2013. "Market Externalities of Large Unemployment Insurance Extension Programs," CEPR Discussion Papers 9673, C.E.P.R. Discussion Papers.
  7. 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.

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