Treatment Evaluation with Selective Participation and Ineligibles

Costa-Dias, Monica and Ichimura, Hidehiko and van den Berg, Gerard J. (2013) Treatment Evaluation with Selective Participation and Ineligibles. Journal of the American Statistical Association, tbc (tbc). ISSN tbc (Submitted)

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Abstract

Matching methods for treatment evaluation based on a conditional independence assumption do not balance selective unobserved diÆerences between treated and non- treated. We derive a simple correction term if there is an instrument that shifts the treatment probability to zero in speciØc 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

Item Type:Article
Uncontrolled Keywords:matching methods, propensity score, policy evaluation, treatment effect, regression dis-continuity, selection, subsidized work, youth unemployment.
Subjects: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
8. Research Management and Impact > 8.5 Evidence-Based Policy and Practice
ID Code:2973
Deposited By: PEPA User
Deposited On:01 Mar 2013 09:57
Last Modified:01 Mar 2013 09:57

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