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Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies

Author

Listed:
  • Carlos A. Flores

    (California Polytechnic State University at San Luis Obispo)

  • Oscar A. Mitnik

    (Federal Deposit Insurance Corporation and IZA)

Abstract

We study the effectiveness of nonexperimental strategies in adjusting for comparison group differences when using data from several programs, each implemented at a different location, to compare their effect if implemented at alternative locations. First, we adjust for individual characteristics differences simultaneously across all groups using unconfoundedness-based and conditional difference-in-difference methods for multiple treatments. Second, we adjust for differences in local economic conditions and stress their role after program participation. Our results show that it is critical to have sufficient overlap across locations in both dimensions and illustrate the difficulty of adjusting for local economic conditions that differ greatly across locations. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Carlos A. Flores & Oscar A. Mitnik, 2013. "Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1691-1707, December.
    • Handle: RePEc:tpr:restat:v:95:y:2013:i:5:p:1691-1707
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    Cited by:

    1. Marisa Coetzee, 2013. "Finding the Benefits: Estimating the Impact of The South African Child Support Grant," South African Journal of Economics, Economic Society of South Africa, vol. 81(3), pages 427-450, September.
    2. Uchino, Taisuke & Uesugi, Iichiro, 2022. "The effects of a megabank merger on firm-Bank relationships and loan availability☆," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    3. Takeshima, Hiroyuki & Adhikari, Rajendra Prasad & Shivakoti, Sabnam & Kaphle, Basu Dev & Kumar, Anjani, 2017. "Heterogeneous returns to chemical fertilizer at the intensive margins: Insights from Nepal," Food Policy, Elsevier, vol. 69(C), pages 97-109.
    4. Laborda, Leopoldo & Mejalenko, Juan & Gómez-Veiga, Isabel, 2023. "Bilingualism and intelligence in children exposed to poverty environments: A Raven's error pattern analysis using a generalized propensity score method," Intelligence, Elsevier, vol. 98(C).
    5. Bogaard, Hein & Svejnar, Jan, 2018. "Incentive pay and performance: Insider econometrics in a multi-unit firm," Labour Economics, Elsevier, vol. 54(C), pages 100-115.
    6. Ashis Das & Jed Friedman & Eeshani Kandpal, 2018. "Does involvement of local NGOs enhance public service delivery? Cautionary evidence from a malaria‐prevention program in India," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 172-188, January.
    7. Chung Choe & Alfonso Flores-Lagunes & Sang-Jun Lee, 2015. "Do dropouts with longer training exposure benefit from training programs? Korean evidence employing methods for continuous treatments," Empirical Economics, Springer, vol. 48(2), pages 849-881, March.
    8. Benjamin Lu & Eli Ben-Michael & Avi Feller & Luke Miratrix, 2023. "Is It Who You Are or Where You Are? Accounting for Compositional Differences in Cross-Site Treatment Effect Variation," Journal of Educational and Behavioral Statistics, , vol. 48(4), pages 420-453, August.
    9. Finn McGuire & Noemi Kreif & Peter C. Smith, 2021. "The effect of distance on maternal institutional delivery choice: Evidence from Malawi," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2144-2167, September.
    10. Jean-Sauveur Ay & Julie Le Gallo, 2021. "The signaling value of nested wine names," Post-Print hal-03268014, HAL.
    11. Aparicio, Gabriela & Bobicì, Vida & De Olloqui, Fernando & Fernández Díez, María Carmen & Gerardino, María Paula & Mitnik, Oscar A. & Vargas, Sebastián, 2021. "Liquidity or Capital?: The Impacts of Easing Credit Constraints in Rural Mexico," IDB Publications (Working Papers) 11332, Inter-American Development Bank.
    12. Takeshima, Hiroyuki & Nasir, Abdullahi Mohammed, "undated". "The Role of the Locations of Public Sector Varietal Development Activities on Agricultural Productivity: Evidence from Northern Nigeria," Feed the Future Innovation Lab for Food Security Policy Research Papers 303015, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    13. Adesina, Adedoyin & Akogun, Oladele & Dillon, Andrew & Friedman, Jed & Njobdi, Sani & Serneels, Pieter, "undated". "Robustness and External Validity: What do we Learn from Repeated Study Designs over Time?," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266292, Agricultural and Applied Economics Association.
    14. Hiroyuki Takeshima, 2019. "Geography of plant breeding systems, agroclimatic similarity, and agricultural productivity: evidence from Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 67-78, January.
    15. Das, Ashis & Friedman, Jed & Kandpal, Eeshani, 2014. "Does involvement of local NGOs enhance public service delivery ? cautionary evidence from a Malaria-prevention evaluation in India," Policy Research Working Paper Series 6931, The World Bank.
    16. Hiroyuki Takeshima & Kamiljon Akramov & Allen Park & Jarilkasin Ilyasov & Tanzila Ergasheva, 2022. "Agriculture-Nutrition Linkages, Cooking-Time, Intrahousehold Equality Among Women and Children: Evidence from Tajikistan," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 940-977, April.
    17. Dehejia Rajeev, 2015. "Experimental and Non-Experimental Methods in Development Economics: A Porous Dialectic," Journal of Globalization and Development, De Gruyter, vol. 6(1), pages 47-69, June.
    18. Salgado, Edgar & Mitnik, Oscar A., 2021. "Spatial and Time Spillovers of Driving Restrictions: Causal Evidence from Limas Pico y Placa Policy," IDB Publications (Working Papers) 11818, Inter-American Development Bank.

    More about this item

    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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