The matching method for treatment evaluation with selective participation and ineligibles
AbstractThe matching method for treatment evaluation does not balance selective unobserved differences between treated and non-treated. We derive a simple correction term if there is an instrument that shifts the treatment probability to zero in specific cases. Policies with eligibility restrictions, where treatment is impossible if some variable exceeds a certain value, provide a natural application. In an empirical analysis, we first examine the performance of matching versus regression-discontinuity estimation in the sharp age-discontinuity design of the NDYP job search assistance program for young unemployed in the UK. Next, we exploit the age eligibility restriction in the Swedish Youth Practice subsidized work program for young unemployed, where compliance is imperfect among the young. Adjusting the matching estimator for selectivity changes the results towards inefectiveness of subsidized work in moving individuals into employment.
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Bibliographic InfoPaper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2008:6.
Length: 36 pages
Date of creation: 21 Apr 2008
Date of revision:
Propensity score; policy evaluation; treatment effect; regression discontinuity; selection; job search assistance; subsidized work; youth unemployment;
Other versions of this item:
- Monica Costa Dias & Hidehiko Ichimura & Gerard J.van den Berg, 2007. "The matching method for treatment evaluation with selective participation and ineligibles," CeMMAP working papers CWP33/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Costa Dias, Monica & Ichimura, Hidehiko & van den Berg, Gerard J., 2008. "The Matching Method for Treatment Evaluation with Selective Participation and Ineligibles," IZA Discussion Papers 3280, Institute for the Study of Labor (IZA).
- Monica Costa Dias & Hidehiko Ichimura & Gerard van den Berg, 2010. "The matching method for treatment evaluation with selective participation and ineligibles," CeMMAP working papers CWP35/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-10 (All new papers)
- NEP-ECM-2008-05-10 (Econometrics)
- NEP-LAB-2008-05-10 (Labour Economics)
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- Joseph, Olivier & Pailhé, Ariane & Recotillet, Isabelle & Solaz, Anne, 2013. "The economic impact of taking short parental leave: Evaluation of a French reform," Labour Economics, Elsevier, vol. 25(C), pages 63-75.
- de Luna, Xavier & Johansson, Per, 2012.
"Testing for Nonparametric Identification of Causal Effects in the Presence of a Quasi-Instrument,"
IZA Discussion Papers
6692, Institute for the Study of Labor (IZA).
- de Luna, Xavier & Johansson, Per, 2012. "Testing for nonparametric identification of causal effects in the presence of a quasi-instrument," Working Paper Series 2012:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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