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The Oaxaca-Blinder unexplained component as a treatment effects estimator

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  • Tymon Sloczynski

    ()
    (Warsaw School of Economics)

Abstract

In this paper I use the National Supported Work (NSW) data to examine the validity of the Oaxaca–Blinder unexplained component as an estimator of the population average treatment effect on the treated (PATT). Precisely, I utilize dataset and variable selections used in previous studies of the NSW data to compare the performance of the Oaxaca–Blinder unexplained component with methods based on the propensity score (Dehejia and Wahba, 1999) and bias-corrected matching estimators (Abadie and Imbens, 2011). I show that in both cases the Oaxaca–Blinder unexplained component performs superior compared to the previously analyzed estimators provided that common support is imposed.

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Bibliographic Info

Paper provided by Department of Applied Econometrics, Warsaw School of Economics in its series Working Papers with number 61.

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Length: 13
Date of creation: 13 Feb 2012
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Handle: RePEc:wse:wpaper:61

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Keywords: decomposition methods; Manpower training; Treatment effects;

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  1. Arun Advani & Tymon Sloczynski, 2013. "Mostly harmless simulations? On the internal validity of empirical Monte Carlo studies," CeMMAP working papers CWP64/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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