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Matching Estimators and the Data from the National Supported Work Demonstration Again

  • Zhao, Zhong

    ()

    (Renmin University of China)

We use the data from the National Supported Work Demonstration to study performance of non-propensity-score-matching estimators, and to compare them with propensity score matching. We find that all matching estimators we studied here are sensitive to the choice of data set. Propensity score methods are sensitive to smoothing parameters, and they usually have larger standard error. Difference-in-differences and bias-corrected matching improve the performance of the matching estimators considered here. Our results suggest that the 1974 earnings are important for Dehejia and Wahba’s PSID data but not for their CPS data in replicating experiment results. After decomposing the selection bias, we find that a sizable selection bias on unobservables is present in all data sets.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2375.

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Length: 48 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2375
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  1. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
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