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IPW estimation and related estimators for evaluation of active labor market policies in a dynamic setting

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  • Vikström, Johan

    () (IFAU - Institute for Evaluation of Labour Market and Education Policy)

Abstract

This paper considers treatment evaluation in a discrete time setting in which treatment could start at any point in time. A typical application is an active labor market policy program which could start after any elapsed unemployment duration. It is shown that various average effects on survival time are identified under unconfoundedness and no-anticipation and inverse probability weighting (IPW) estimators are provided for these effects. The estimators are applied to a Swedish work practice program. The IPW estimator is compared with related estimators. One conclusion is that the matching estimator proposed by Fredriksson and Johansson (2008) overlooks a selective censoring problem.

Suggested Citation

  • Vikström, Johan, 2014. "IPW estimation and related estimators for evaluation of active labor market policies in a dynamic setting," Working Paper Series 2014:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2014_001
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    File URL: http://www.ifau.se/en/Research/Publications/Working-papers/2014/IPW-estimation-and-related-estimators-for-evaluation-of-active-labor-market-policies-in-a-dynamic-setting/
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    More about this item

    Keywords

    Treatment effects; dynamic treatment assignment; program evaluation; work practice;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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