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Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods

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  • Michael Lechner

    (University of St. Gallen, Swiss Institute for International Economics & Applied Economic Research, Bodanstr. 8, CH- 9000 St. Gallen/Switzerland)

Abstract

Recently, several studies have analysed active labour market policies by using a recently proposed matching estimator for multiple programmes. Since there is only very limited practical experience with this estimator, this paper checks its sensitivity with resprect to issues that are of practical importance in this kind of evaluation study. The estimator turns out to be fairly robust to several features that concern its implementation. Furthermore, the paper demonstrates that the matching approach per se is no panacea for solving all the problems of evaluation studies, but that its success depends critically on the information that is available in the data. Finally, a comparison with a bootstrap distribution provides some justification for using a simplified approximation of the distribution of the estimator that ignores its sequential nature.

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File URL: http://128.118.178.162/eps/lab/papers/0505/0505006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0505006.

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Length: 23 pages
Date of creation: 06 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0505006

Note: Type of Document - pdf; pages: 23
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Web page: http://128.118.178.162

Related research

Keywords: Balancing score; Matching; Multiple programmes; Programme evaluation; Sensitivity analysis; Treatment effects;

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References

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  1. Larsson, Laura, 2000. "Evaluation of Swedish Youth Labour Market Programmes," Working Paper Series 2000:6, Uppsala University, Department of Economics.
  2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  3. Vassilis A. Hajivassiliou & Axel Borsch-Supan, 1990. "Smooth Unbiased Multivariate Probability Simulators for Maximum Likelihood Estimation of Limited Dependent Variable Models," Cowles Foundation Discussion Papers 960, Cowles Foundation for Research in Economics, Yale University.
  4. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2000. "The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment," CEPR Discussion Papers 2451, C.E.P.R. Discussion Papers.
  5. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working Papers 780, Princeton University, Department of Economics, Industrial Relations Section..
  6. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
  7. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  8. Larsson, L., 2000. "Evaluation of Swedish Youth Labour Market Programmes," Papers 2000:6, Uppsala - Working Paper Series.
  9. John Geweke & Michael Keane & David Runkle, 1994. "Alternative computational approaches to inference in the multinomial probit model," Staff Report 170, Federal Reserve Bank of Minneapolis.
  10. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
  11. repec:cup:cbooks:9780521424080 is not listed on IDEAS
  12. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  13. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
  14. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
  15. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers 0237, National Bureau of Economic Research, Inc.
  16. Larsson, Laura, 2000. "Evaluation of Swedish youth labour market programmes," Working Paper Series 2000:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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