Establishing causal relationships in social policy evaluation is important, but difficult due to sample selection. To evaluate the performance of estimators designed to handle sample selection bias we analyse data from a Norwegian rehabilitation project with a randomised experimental design. The data permit us to compare the performance of different nonexperimental estimators with the experimental results. In our case study we find that nonexperimental evaluation based on sample selection estimators with selection terms which fails to meet conventional levels of statistical significance is highly unreliable. The difference in difference estimator and stratification on propensity scores perform better in our context.
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Length: 30 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:bereco:1700
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Find related papers by JEL classification: H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Statistical Decision Theory; Operations Research C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data
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