Combining information from Heckman and matching estimators: testing and controlling for hidden bias
We demonstrate how the Heckman methodology can be applied to the Rosenbaum sensitivity model and the Rubin matched difference estimator. We develop a statistical test of the conditional independence assumption (CIA), based on Heckit for matched pairs. If the CIA is rejected, the method facilitates the estimation of matched treatment effects adjusted for hidden bias. We illustrate this methodology empirically for the full-time/part-time pay gap for British women. The proposed method has clear utility in establishing whether propensity score matched treatment estimates are prone to unobserved selection bias and for controlling for such bias
Volume (Year): 33 (2013)
Issue (Month): 3 ()
|Contact details of provider:|| |
References listed on IDEAS
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.:
- John Gibson, 2009. "The public sector pay premium, compensating differentials and unions: propensity score matching evidence from Australia, Canada, Great Britain and the United States," Economics Bulletin, AccessEcon, vol. 29(3), pages 2325-2332.
- Nawata, Kazumitsu, 1993. "A note on the estimation of models with sample-selection biases," Economics Letters, Elsevier, vol. 42(1), pages 15-24.
- Martin Huber, 2009.
"Treatment evaluation in the presence of sample selection,"
University of St. Gallen Department of Economics working paper series 2009
2009-07, Department of Economics, University of St. Gallen.
- Martin Huber, 2014. "Treatment Evaluation in the Presence of Sample Selection," Econometric Reviews, Taylor & Francis Journals, vol. 33(8), pages 869-905, November.
- Black, Dan A. & Smith, J.A.Jeffrey A., 2004.
"How robust is the evidence on the effects of college quality? Evidence from matching,"
Journal of Econometrics,
Elsevier, vol. 121(1-2), pages 99-124.
- Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20033, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
- Sascha O. Becker & Marco Caliendo, 2007.
"mhbounds - Sensitivity Analysis for Average Treatment Effects,"
Discussion Papers of DIW Berlin
659, DIW Berlin, German Institute for Economic Research.
- Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
- Becker, Sascha O. & Caliendo, Marco, 2007. "mhbounds – Sensitivity Analysis for Average Treatment Effects," IZA Discussion Papers 2542, Institute for the Study of Labor (IZA).
- de Luna, Xavier & Johansson, Per, 2012.
"Testing for nonparametric identification of causal effects in the presence of a quasi-instrument,"
Working Paper Series
2012:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- de Luna, Xavier & Johansson, Per, 2012. "Testing for Nonparametric Identification of Causal Effects in the Presence of a Quasi-Instrument," IZA Discussion Papers 6692, Institute for the Study of Labor (IZA).
- Klein, Roger & Vella, Francis, 2006.
"A Semiparametric Model for Binary Response and Continuous Outcomes Under Index Heteroscedasticity,"
IZA Discussion Papers
2383, Institute for the Study of Labor (IZA).
- Roger Klein & Francis Vella, 2009. "A semiparametric model for binary response and continuous outcomes under index heteroscedasticity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 735-762.
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Eric S. Lin & Yu-lung Lue, 2010. "The Causal Effect of the Cram Schooling Timing Decision on Math Scores," Economics Bulletin, AccessEcon, vol. 30(3), pages 2330-2345.
- Sara Connolly & Mary Gregory, 2009. "The part-time pay penalty: earnings trajectories of British Women," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i76-i97, April.
- DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, Social Science Research Center Berlin (WZB).
- Newey, W.K. & Powell, J.L. & Walker, J.R., 1990.
"Semiparametric Estimation Of Selection Models: Some Empirical Results,"
9001, Wisconsin Madison - Social Systems.
- Newey, Whitney K & Powell, James L & Walker, James R, 1990. "Semiparametric Estimation of Selection Models: Some Empirical Results," American Economic Review, American Economic Association, vol. 80(2), pages 324-28, May.
- Oostendorp, Remco, 2004.
"Globalization and the gender wage gap,"
Policy Research Working Paper Series
3256, The World Bank.
- Ryan Pike, 2011. "Patterns of pay: Results of the Annual Survey of Hours and Earnings 1997 to 2010," Economic and Labour Market Review, Palgrave Macmillan, vol. 5(3), pages 14-40, March.
- Manning, Alan & Petrongolo, Barbara, 2007.
"The Part-Time Pay Penalty for Women in Britain,"
CEPR Discussion Papers
6058, C.E.P.R. Discussion Papers.
- David Blanchflower & Alex Bryson, 2004.
"The Union Wage Premium in the US and the UK,"
CEP Discussion Papers
dp0612, Centre for Economic Performance, LSE.
- Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
- Stephen G. Donald & Yu-Chin Hsu & Robert P. Lieli, 2014. "Testing the Unconfoundedness Assumption via Inverse Probability Weighted Estimators of (L)ATT," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 32(3), pages 395-415, July.
- Richard Blundell & Howard Reed & Thomas M. Stoker, 2003. "Interpreting Aggregate Wage Growth: The Role of Labor Market Participation," American Economic Review, American Economic Association, vol. 93(4), pages 1114-1131, September.
- Rosenbaum, Paul R., 2005. "Heterogeneity and Causality: Unit Heterogeneity and Design Sensitivity in Observational Studies," The American Statistician, American Statistical Association, vol. 59, pages 147-152, May.
- Karen Mumford & Peter N. Smith, 2009. "What determines the part-time and gender earnings gaps in Britain: evidence from the workplace," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages i56-i75, April.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-13-00321. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.