Robustness of the encouragement design in a two-treatment randomized control trial
In this paper we discuss how the " encouragement design "used in randomized controlled trials can be extended to a setting with two treatments and one control group. Conditions to interpret the Two-Stage Least Squares (TSLS) estimates causally are stronger than in the case with only one treatment and one control group. A rst case where a causal interpretation holds is when only those assigned to one of the two treatments can e ectively enter the corresponding program. A second case is when there are always takers. In that second case, entry rates into a given program should be the same among those assigned to the control group and those assigned to the other program; this restriction can be tested from the data. In cases where the restriction is rejected, we derive bounds to the Local Average Treatment E ect (LATE) based on weaker monotonicity conditions. We illustrate the results using data from a large randomized experiment where job seekers at risk of long term unemployment can receive a reinforced counseling scheme o ered either by the public or the private sector, or remain on a standard track.
|Date of creation:||Jun 2013|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00834169|
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- Luc Behaghel & Bruno Cr?pon & Marc Gurgand, 2014.
"Private and Public Provision of Counseling to Job Seekers: Evidence from a Large Controlled Experiment,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 6(4), pages 142-174, October.
- Behaghel, Luc & Crépon, Bruno & Gurgand, Marc, 2012. "Private and Public Provision of Counseling to Job-Seekers: Evidence from a Large Controlled Experiment," IZA Discussion Papers 6518, Institute for the Study of Labor (IZA).
- Luc Behaghel & Bruno Crépon & Marc Gurgand, 2014. "Private and Public Provision of Counseling to Job-Seekers: Evidence from a Large Controlled Experiment," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01067926, HAL.
- David S. Lee, 2009. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," Review of Economic Studies, Oxford University Press, vol. 76(3), pages 1071-1102.