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Heterogeneous Impacts in PROGRESA

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Author Info
Djebbari, Habiba () (Université Laval)
Smith, Jeffrey A. () (University of Michigan)

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Abstract

The “common effect” model in program evaluation assumes that all treated individuals have the same impact from a program. Our paper contributes to the recent literature that tests and goes beyond the common effect model by investigating impact heterogeneity using data from the experimental evaluation of the Mexican conditional cash transfer program PROGRESA. Our analysis builds upon and extends that in Heckman, Smith and Clements (1997) and more recent studies of quantile treatment effects and random coefficient models. We find strong evidence of systematic (i.e. subgroup) variation in impacts in PROGRESA and modest evidence of heterogeneous impacts conditional on the systematic impacts. We find evidence against the perfect positive dependence assumption that underlies the interpretation of quantile treatment effects as impacts at quantiles of the untreated outcome distribution. Our paper concludes with a discussion of the policy relevance of our findings and of heterogeneous impacts more generally.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3362.

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Length: 2008 pages
Date of creation: Feb 2008
Date of revision:
Publication status: published in: Journal of Econometrics, 2008, 145 (1-2), 64-80
Handle: RePEc:iza:izadps:dp3362

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Related research
Keywords: randomized experiment; quantile treatment effects; heterogeneous impacts;

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Find related papers by JEL classification:
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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References listed on IDEAS
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  1. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  2. James Heckman & Jeffrey Smith & Christopher Taber, 1998. "Accounting For Dropouts In Evaluations Of Social Programs," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 1-14, February. [Downloadable!] (restricted)
  3. Skoufias, Emmanuel & Parker, Susan W., 2001. "Conditional cash transfers and their impact on child work and schooling," FCND briefs 123, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  4. Heckman, James J & Smith, Jeffrey, 1997. "Making the Most Out of Programme Evaluations and Social Experiments: Accounting for Heterogeneity in Programme Impacts," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 487-535, October. [Downloadable!] (restricted)
  5. Dammert, Ana C., 2008. "Heterogeneous Impacts of Conditional Cash Transfers: Evidence from Nicaragua," IZA Discussion Papers 3653, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Alberto Abadie & Joshua Angrist & Guido Imbens, 2002. "Instrumental Variables Estimates of the Effect of Subsidized Training on the Quantiles of Trainee Earnings," Econometrica, Econometric Society, vol. 70(1), pages 91-117, January. [Downloadable!] (restricted)
    Other versions:
  7. Donald W. K. Andrews, 2000. "Inconsistency of the Bootstrap when a Parameter Is on the Boundary of the Parameter Space," Econometrica, Econometric Society, vol. 68(2), pages 399-406, March.
  8. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March. [Downloadable!] (restricted)
    Other versions:
  9. Stefanie Behncke & Markus Frölich & Michael Lechner, 2007. "Targeting Labour Market Programmes: Results from a Randomized Experiment," IZA Discussion Papers 3085, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Marianne P. Bitler & Jonah B. Gelbach & Hilary W. Hoynes, 2006. "What Mean Impacts Miss: Distributional Effects of Welfare Reform Experiments," American Economic Review, American Economic Association, vol. 96(4), pages 988-1012, September. [Downloadable!]
    Other versions:
  11. Hoynes, Hilary & Bitler, Marianne P. & Gelbach, Jonah B., 2005. "Distributional Impacts of the Self-Sufficiency Project," Working Papers 05-30, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  12. Brendstrup, Bjarne & Paarsch, Harry J., 2007. "Semiparametric identification and estimation in multi-object, English auctions," Journal of Econometrics, Elsevier, vol. 141(1), pages 84-108, November. [Downloadable!] (restricted)
  13. Burtless, Gary, 1995. "The Case for Randomized Field Trials in Economic and Policy Research," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 63-84, Spring. [Downloadable!] (restricted)
  14. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September. [Downloadable!]
  15. Mark C. Berger & Dan Black & Jeffrey Smith, 2000. "Evaluating Profiling as a Means of Allocating Government Services," UWO Department of Economics Working Papers 200018, University of Western Ontario, Department of Economics. [Downloadable!]
  16. James J. Heckman & Jeffrey A. Smith, 1998. "Evaluating the Welfare State," NBER Working Papers 6542, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Heckman, James J, 1996. "Randomization as an Instrumental Variable: Notes," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 336-41, May. [Downloadable!] (restricted)
  18. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June. [Downloadable!] (restricted)
    Other versions:
  19. Tobias, Justin, 2005. "Estimation, Learning and Parameters of Interest in a Multiple Outcome Selection Model," Staff General Research Papers 12480, Iowa State University, Department of Economics. [Downloadable!]
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