The Matching Method for Treatment Evaluation with Selective Participation and Ineligibles

Costa-Dias, Monica and Ichimura, Hidehiko and van den Berg, Gerard J (2012) The Matching Method for Treatment Evaluation with Selective Participation and Ineligibles. Journal of the American Statistical Association, tbc (tbc). ISSN tbc (Submitted)

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Abstract

The matching method for treatment evaluation does not balance selective unobserved differences between treated and non-treated. We derive a simple correction term if there is an instrument that shifts the treatment probability to zero in specific cases. Policies with eligibility restrictions, where treatment is impossible if some variable exceeds a certain value, provide a natural application. In an empirical analysis, we exploit the age eligibility restriction in the Swedish Youth Practice subsidized work program for young unemployed, where compliance is imperfect among the young. Adjusting the matching estimator for selectivity changes the results towards making subsidized work detrimental in moving individuals into employment.We also consider the eligibility change induced by the introduction of the program.

Item Type:Article
Uncontrolled Keywords:propensity score, policy evaluation, treatment effect, regression discontinuity, selection,subsidized work, youth unemployment.
Subjects:1. Frameworks for Research and Research Designs > 1.11 Evaluation Research
5. Quantitative Data Handling and Data Analysis > 5.4 Microdata Methods > 5.4.1 Data linkage
5. Quantitative Data Handling and Data Analysis > 5.5 Regression Methods
ID Code:2942
Deposited By: PEPA User
Deposited On:19 Dec 2012 11:03
Last Modified:06 Feb 2013 13:57

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