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The matching method for treatment evaluation with selective participation and ineligibles

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Author Info

  • Costa Dias, Monica

    (Institute for Fiscal Studies)

  • Ichimura, Hidehiko

    (University of Tokyo)

  • van den Berg, Gerard J.

    ()
    (Department of Economics, University Amsterdam)

Abstract

The 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 Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2008:6.

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Length: 36 pages
Date of creation: 21 Apr 2008
Date of revision:
Handle: RePEc:hhs:ifauwp:2008_006

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Related research

Keywords: Propensity score; policy evaluation; treatment effect; regression discontinuity; selection; job search assistance; subsidized work; youth unemployment;

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Cited by:
  1. 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.
  2. 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).

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