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Sensitivity Analysis Of Job-Training Effects On Reemployment For Korean Women

  • Myoung-jae Lee


    (Department of Economics, Korea University)

  • Sang-jun Lee

The main difficulty in treatment effect analysis with matching is accounting for unobserved differences (i.e., selection problem) between the treatment and control groups, because matching assumes no such differences. The traditional way to tackle the difficulty has been ¡®control function¡¯ approaches with selection correction terms. This paper examines relatively new approaches: sensitivity analyses?sensitivity to unobservables?in Rosenbaum (1987), Gastwirth et al. (1998), and Lee (2004). These sensitivity analyses are applied to the data used in Lee and Lee (2005) to see how the assumption of no unobserved difference in matching affects the findings in Lee and Lee, to compare how the different sensitivity analyses perform, and to relate the ¡®sensitivity parameters¡¯ in the different sensitivity analyses to one another. We find (i) the conclusions in Lee and Lee are weakened in the sense that only the ¡®strong¡¯ ones survive, (ii) the sensitivity analysis in Rosenbaum (1987) is too conservative (and inferior to Gastwirth et al.¡¯s), and (iii) Gastwirth et al.¡¯s (1998) and Lee¡¯s (2004) approaches agree on some findings to be insensitive, but the two approaches also disagree on some other findings. We also look for ¡®comparable values¡¯ for the sensitivity parameters such that the resulting sensitivity findings are comparable across the different sensitivity analyses.

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Paper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0720.

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Length: 34 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:iek:wpaper:0720
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  1. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2003. "New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity," IZA Discussion Papers 750, Institute for the Study of Labor (IZA).
  2. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
  3. Andrea Ichino & Fabrizia Mealli & Tommaso Nannicini, 2008. "From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 305-327.
  4. Guildo W. Imbens, 2003. "Sensitivity to Exogeneity Assumptions in Program Evaluation," American Economic Review, American Economic Association, vol. 93(2), pages 126-132, May.
  5. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
  6. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  7. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  8. Heckman, J J & Tobias, Justin & Vytlacil, Ed, 2003. "Simple Estimators for Treatment Parameters in a Latent Variable Framework," Staff General Research Papers 12012, Iowa State University, Department of Economics.
  9. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
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