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Using Matching Estiamtors to Evaluate Youth Employment Programs: Evidence from France, 1986-1988

Author

Listed:
  • Thomas Brodaty

    (CNRS and CREST-INSEE)

  • Bruno Crepon

    (CNRS and CREST-INSEE)

  • Denis Fougere

    (CNRS and CREST-INSEE)

Abstract

In this paper we apply the statistical framework developed by Imbens (1998) and Lechner (1999) to identify and to estimate the causal effects of multiple treatments under the conditional independence assumption. The example concerns youth employment programs which were set up in France during the eighties to improve the labor market prospects of the most disadvantaged and unskilled young workers. The empirical analysis makes use of non- experimental longitudinal micro data collected by INSEE (Institut National de la Statistique et des Etudes Economiques, Paris) from 1986 to 1988. In the first section, we show that under the conditional independence assumption, matching only on the ratio of the conditional propensity scores is sufficient to remove the selectivity bias and it is therefore possible to use directly a one dimensional kernel function for implementing the matching techniques which were recently studied by Heckman, Ichimura and Todd (1998) and Heckman, Ichimura, Smith and Todd (1998). The specification and the estimation of the propensity scores are key issues. Due to the fact that our sample is extracted from the stock of unemployed people at a given date (August 1986), a natural specification of the treatment probabilities may be derived from a competing-risks duration model that takes into account the stock sampling bias correction. Our results show that different programs have differentiated effects, but also that there are variations in the post-program effects for participants in the same program : in general the relative effectiveness tends to increase with respect to the ratio of the scores.

Suggested Citation

  • Thomas Brodaty & Bruno Crepon & Denis Fougere, 2000. "Using Matching Estiamtors to Evaluate Youth Employment Programs: Evidence from France, 1986-1988," Econometric Society World Congress 2000 Contributed Papers 0576, Econometric Society.
  • Handle: RePEc:ecm:wc2000:0576
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    References listed on IDEAS

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    1. Fougere, Denis & Kramarz, Francis & Magnac, Thierry, 2000. "Youth employment policies in France," European Economic Review, Elsevier, vol. 44(4-6), pages 928-942, May.
    2. Liliane Bonnal & Denis Fougère & Anne Sérandon, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 683-713.
    3. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
    4. 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.
    5. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
    6. 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.
    7. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    8. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
    9. Thierry Magnac, 1997. "State Dependence and Heterogeity in youth Employment Histories," Working Papers 97-47, Center for Research in Economics and Statistics.
    10. 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.
    11. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-348, July.
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    Cited by:

    1. Matthieu Bunel & Fabrice Gilles & Yannick L'Horty, 2009. "The effect of social security payroll tax reductions on employment and wages: an evaluation of the 2003 French reform," Working Papers hal-01292089, HAL.
    2. Kluve, Jochen & Puerto, Susanna & Robalino, David & Romero, José Manuel & Rother, Friederike & Stöterau, Jonathan & Weidenkaff, Felix & Witte, Marc, 2016. "Do Youth Employment Programs Improve Labor Market Outcomes? A Systematic Review," Ruhr Economic Papers 648, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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