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Treatment evaluation in the presence of sample selection

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  • Martin Huber

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Abstract

Sample selection and attrition are inherent in a range of treatment evaluation problems such as the estimation of the returns to schooling or training. Conventional estimators tackling selection bias typically rely on restrictive functional form assumptions that are unlikely to hold in reality. This paper shows identification of average and quantile treatment effects in the presence of the double selection problem (i) into a selective subpopulation (e.g., working - selection on unobservables) and (ii) into a binary treatment (e.g., training - selection on observables) based on weighting observations by the inverse of a nested propensity score that characterizes either selection probability. Root-n-consistent weighting estimators based on parametric propensity score models are applied to female labor market data to estimate the returns to education.

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Bibliographic Info

Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2009 with number 2009-07.

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Length: 36 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:usg:dp2009:2009-07

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Keywords: treatment effects; sample selection; inverse probability weighting; propensity score matching.;

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References

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  1. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of Sample Attrition in Panel Data: The Michigan Panel Study of income Dynamics," Economics Working Paper Archive 379, The Johns Hopkins University,Department of Economics.
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  4. Michael Lechner & Blaise Melly, 2007. "Earnings Effects of Training Programs," University of St. Gallen Department of Economics working paper series 2007 2007-28, Department of Economics, University of St. Gallen.
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  24. Andrews, Donald W K & Schafgans, Marcia M A, 1998. "Semiparametric Estimation of the Intercept of a Sample Selection Model," Review of Economic Studies, Wiley Blackwell, vol. 65(3), pages 497-517, July.
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Citations

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Cited by:
  1. Martin Huber, 2010. "Identification of average treatment effects in social experiments under different forms of attrition," University of St. Gallen Department of Economics working paper series 2010 2010-22, Department of Economics, University of St. Gallen.
  2. Gerry H. Makepeace & Michael J. Peel, 2013. "Combining information from Heckman and matching estimators: testing and controlling for hidden bias," Economics Bulletin, AccessEcon, vol. 33(3), pages 2422-2436.

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