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Counterfactual Analysis Using Censored Duration Data

Author

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  • Delgado, Miguel A.
  • García Suaza, Andrés Felipe

Abstract

We propose standardization techniques for the duration distribution in a population with respect to another taken as standard using right censored data, which forms a basis for counterfactual comparisons between distributional features of interest. Alternative standardizations are based on either a proportional hazard semiparametric specification or a nonparametric specification of the underlying conditional distribution. Applications to the restricted mean survival time and the hazard rate are discussed in detail. The proposal is applied to the counterfactual analysis of spells of unemployment duration gender gaps in Spain between 2004-2007. The behavior in small samples is investigated using Monte Carlo experiments.

Suggested Citation

  • Delgado, Miguel A. & García Suaza, Andrés Felipe, 2018. "Counterfactual Analysis Using Censored Duration Data," UC3M Working papers. Economics 27821, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:27821
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    Keywords

    Right Censoring;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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