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Partial Idendification of Wage Effects of Training Programs

In an evaluation of a job-training program, the influence of the program on the in-dividual wages is important, because it reflects the program effect on human capital. Esti-mating these effects is complicated because we observe wages only for employed individuals, and employment is itself an outcome of the program. Only usually implausible assumptions allow identifying these treatment effects. Therefore, we suggest weaker and more credible assumptions that bound various average and quantile effects. For these bounds, consistent, nonparametric estimators are proposed. In a reevaluation of a German training program, we find that a considerable improvement of the long-run potential wages of its participants.

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Paper provided by Brown University, Department of Economics in its series Working Papers with number 2010-8.

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Date of creation: 2010
Date of revision:
Handle: RePEc:bro:econwp:2010-8
Contact details of provider: Postal: Department of Economics, Brown University, Providence, RI 02912

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  1. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2006. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CIRJE F-Series CIRJE-F-420, CIRJE, Faculty of Economics, University of Tokyo.
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  8. Charles F. Manski, 1997. "Monotone Treatment Response," Econometrica, Econometric Society, vol. 65(6), pages 1311-1334, November.
  9. Guido W. Imbens & Whitney Newey & Geert Ridder, 2005. "Mean-square-error Calculations for Average Treatment Effects," IEPR Working Papers 05.34, Institute of Economic Policy Research (IEPR).
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  13. Angrist, J.D., 1996. "Conditional Independance in Sample Selection Models," Working papers 96-27, Massachusetts Institute of Technology (MIT), Department of Economics.
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  15. Joshua Angrist & Eric Bettinger & Michael Kremer, 2004. "Long-Term Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," NBER Working Papers 10713, National Bureau of Economic Research, Inc.
  16. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
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  18. Jörg Stoye, 2008. "More on confidence intervals for partially identified parameters," CeMMAP working papers CWP11/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  19. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
  20. Jan C. van Ours, 2002. "The Locking-in Effect of Subsidized Jobs," William Davidson Institute Working Papers Series 474, William Davidson Institute at the University of Michigan.
  21. Jinyong Hahn, 1998. "On the Role of the Propensity Score in Efficient Semiparametric Estimation of Average Treatment Effects," Econometrica, Econometric Society, vol. 66(2), pages 315-332, March.
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  23. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  24. van Ours, J.C., 2004. "The locking-in effect of subsidized jobs," Other publications TiSEM c4fd99a1-4c2f-46c6-9ee2-3, Tilburg University, School of Economics and Management.
  25. Mitali Das & Whitney K. Newey & Francis Vella, 2003. "Nonparametric Estimation of Sample Selection Models," Review of Economic Studies, Oxford University Press, vol. 70(1), pages 33-58.
  26. Card, D. & Michalopoulos, C. & Robins, P.K., 2001. "Measuring Wage Growth Among Former Welfare Recipients," Papers 2001-5, Gouvernement du Canada - Human Resources Development.
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