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A simple procedure for the evaluation of treatment effects on duration variables

Author

Listed:
  • Abbring, Jaap H

    () (Free University Amsterdam)

  • van den Berg, Gerard J

    () (Free University Amsterdam, Tinbergen Institute, IFAU)

Abstract

Often, a treatment and the outcome of interest are characterized by the moment they occur, and these moments are realizations of stochastic processes with dependent unobserved determinants. We develop a simple and intuitive method for inference on the treatment effect. The method can be implemented as a graphical procedure or as a straightforward parameter test in an auxiliary univariate single-spell duration model. The method exploits information on the timing of the treatment relative to the outcome that is discarded in binary treatment analyses.

Suggested Citation

  • Abbring, Jaap H & van den Berg, Gerard J, 2003. "A simple procedure for the evaluation of treatment effects on duration variables," Working Paper Series 2003:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2003_019
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    References listed on IDEAS

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    1. Gerard J. van den Berg & Bas van der Klaauw & Jan C. van Ours, 2004. "Punitive Sanctions and the Transition Rate from Welfare to Work," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 211-241, January.
    2. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May.
    3. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-663, May.
    4. 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.
    5. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 21-51.
    6. Lee Lillard & Constantijn Panis, 1996. "Marital status and mortality: The role of health," Demography, Springer;Population Association of America (PAA), vol. 33(3), pages 313-327, August.
    7. Chris Elbers & Geert Ridder, 1982. "True and Spurious Duration Dependence: The Identifiability of the Proportional Hazard Model," Review of Economic Studies, Oxford University Press, vol. 49(3), pages 403-409.
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    Citations

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    Cited by:

    1. Svarer, Michael, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," IZA Discussion Papers 3015, Institute for the Study of Labor (IZA).
    2. Marinescu, Ioana, 2016. "Divorce: What does learning have to do with it?," Labour Economics, Elsevier, vol. 38(C), pages 90-105.
    3. Hägglund, Pathric & Johansson, Per & Laun, Lisa, 2015. "Rehabilitation of mental illness and chronic pain – the impact on sick leave and health," Working Paper Series 2015:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

    Duration analysis; hazard rate; selectivity bias; treatment effect; unobserved heterogeneity;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • 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
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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