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Sensitivity Analysis Of Job-Training Effects On Reemployment For Korean Women

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Author Info

  • Myoung-jae Lee

    ()
    (Department of Economics, Korea University)

  • Sang-jun Lee

Abstract

The main difficulty in treatment effect analysis with matching is accounting for unobserved differences (i.e., selection problem) between the treatment and control groups, because matching assumes no such differences. The traditional way to tackle the difficulty has been ¡®control function¡¯ approaches with selection correction terms. This paper examines relatively new approaches: sensitivity analyses?sensitivity to unobservables?in Rosenbaum (1987), Gastwirth et al. (1998), and Lee (2004). These sensitivity analyses are applied to the data used in Lee and Lee (2005) to see how the assumption of no unobserved difference in matching affects the findings in Lee and Lee, to compare how the different sensitivity analyses perform, and to relate the ¡®sensitivity parameters¡¯ in the different sensitivity analyses to one another. We find (i) the conclusions in Lee and Lee are weakened in the sense that only the ¡®strong¡¯ ones survive, (ii) the sensitivity analysis in Rosenbaum (1987) is too conservative (and inferior to Gastwirth et al.¡¯s), and (iii) Gastwirth et al.¡¯s (1998) and Lee¡¯s (2004) approaches agree on some findings to be insensitive, but the two approaches also disagree on some other findings. We also look for ¡®comparable values¡¯ for the sensitivity parameters such that the resulting sensitivity findings are comparable across the different sensitivity analyses.

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File URL: http://econ.korea.ac.kr/~ri/WorkingPapers/W0720.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0720.

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Length: 34 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:iek:wpaper:0720

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Keywords: matching; sample selection; sensitivity analysis; job training;

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  1. Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," IZA Discussion Papers 2149, Institute for the Study of Labor (IZA).
  2. Heckman, J J & Tobias, Justin & Vytlacil, Ed, 2003. "Simple Estimators for Treatment Parameters in a Latent Variable Framework," Staff General Research Papers, Iowa State University, Department of Economics 12012, Iowa State University, Department of Economics.
  3. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  4. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," NBER Working Papers 7831, National Bureau of Economic Research, Inc.
  5. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  7. Guildo W. Imbens, 2003. "Sensitivity to Exogeneity Assumptions in Program Evaluation," American Economic Review, American Economic Association, American Economic Association, vol. 93(2), pages 126-132, May.
  8. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2003. "New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity," IZA Discussion Papers 750, Institute for the Study of Labor (IZA).
  9. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
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Cited by:
  1. Pao-Li Chang¤ & Myoung-Jae Lee, 2008. "The WTO Trade Effect," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c013_027, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Lee, Myoung-jae, 2012. "Treatment effects in sample selection models and their nonparametric estimation," Journal of Econometrics, Elsevier, Elsevier, vol. 167(2), pages 317-329.

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