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The Sensitivity of Experimental Impact Estimates: Evidence from the National JTPA Study

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Author Info
James J. Heckman
Jeffrey A. Smith

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Abstract

The recent experimental evaluation of the U.S. Job Training Partnership Act (JTPA) program found negative effects of training on the earnings of disadvantaged male youth and no effect on the earnings of disadvantaged female youth. These findings provided justification for Congress to cut the budget of JTPA's youth component by over 80 percent. In this paper, we examine the sensitivity of the experimental impact estimates along several dimensions of construction and interpretation. We find that the statistical significance of the male youth estimates is extremely fragile and that the magnitudes of the estimates for both youth groups are sensitive to nearly all the factors we consider. In particular, accounting for experimental control group members who substitute training from other providers leads to a much more positive picture regarding the effectiveness of JTPA classroom training. Our study indicates the value of sensitivity analyses in experimental evaluations and illustrates that experimental impact estimates, like those from nonexperimental analyses, require careful interpretation if they are to provide a reliable guide to policymakers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6105.

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Date of creation: Jul 1997
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Handle: RePEc:nbr:nberwo:6105

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Find related papers by JEL classification:
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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  1. LaLonde, Robert J, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 149-68, Spring. [Downloadable!] (restricted)
  2. James Heckman & Jeffrey Smith & Christopher Taber, 1994. "Accounting for Dropouts in Evaluations of Social Experiments," NBER Technical Working Papers 0166, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fröhlich, Markus & Lechner, Michael, 2004. "Regional Treatment Intensity as an Instrument for the Evaluation of Labour Market Policies," CEPR Discussion Papers 4304, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Jeffrey Smith, 2000. "A Critical Survey of Empirical Methods for Evaluating Active Labor Market Policies," UWO Department of Economics Working Papers 20006, University of Western Ontario, Department of Economics. [Downloadable!]
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  3. Mitali Das, 2000. "Instrumental Variables Estimation of Nonparametric Models with Discrete Endogenous Regressors," Econometric Society World Congress 2000 Contributed Papers 1008, Econometric Society. [Downloadable!]
  4. Rajeev Dehejia, 2000. "Was There a Riverside Miracle? A Framework for Evaluating Multi-Site Programs," NBER Working Papers 7844, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Carolyn J. Heinrich & Jeffrey B. Wenger, 2002. "The Economic Contributions of James J. Heckman and Daniel L. McFadden," Review of Political Economy, Taylor and Francis Journals, vol. 14(1), pages 69-89, January. [Downloadable!] (restricted)
  6. Smith, Jeffrey, 2000. "Evaluation aktiver Arbeitsmarktpolitik : Erfahrungen aus Nordamerika (Evaluating Avtive Labor Market Policies : Lessons from North America)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(3), pages 345-356. [Downloadable!]
  7. Rajeev H. Dehejia, 2002. "Was there a Riverside miracle? An hierarchical framework for evaluating programs with grouped data," Discussion Papers 0102-15, Columbia University, Department of Economics. [Downloadable!]
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