TY - JOUR
T1 - Treatment evaluation with selective participation and ineligibles
AU - Costa Dias, Monica
AU - Ichimura, Hidehiko
AU - van den Berg, Gerard J.
N1 - Funding Information:
Monica Costa Dias is Senior Research Economist, Institute for Fiscal Studies, London WC1E 7AE, UK (E-mail: monica [email protected]); Centre for Economics and Finance at the University of Porto; Institute for the Study of Labor (IZA), Bonn, Germany. Hidehiko Ichimura is a Professor, Graduate School of Economics and Graduate School of Public Policy, University of Tokyo, Bunkyo-ku, Tokyo 113-8654, Japan (E-mail: [email protected]). Gerard J. van den Berg is Alexander von Humboldt Professor of Econometrics and Empirical Economics, University of Mannheim, Mannheim, Germany (E-mail: [email protected]); IFAU-Uppsala, VU University Amsterdam, IZA, CEPR, and IFS. We thank the editor, an anonymous associate editor, two anonymous referees, Richard Blundell, Xavier de Luna, Barbara Sianesi, and Petra Todd, for useful comments. We also thank Louise Kennerberg and Barbara Sianesi for help with the Swedish data. We gratefully acknowledge financial support from the ESRC and from IFAU-Uppsala. Costa Dias is thankful to Fundacao para a Ciencia e Tecnologia and the European Social Fund for financial support. Ichimura thanks support from the JSPS Basic Research fund.
PY - 2013
Y1 - 2013
N2 - Matching methods for treatment evaluation based on a conditional independence assumption do not balance selective unobserved differences between treated and nontreated. 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 toward making subsidized work detrimental in moving individuals into employment.
AB - Matching methods for treatment evaluation based on a conditional independence assumption do not balance selective unobserved differences between treated and nontreated. 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 toward making subsidized work detrimental in moving individuals into employment.
KW - Matching methods
KW - Policy evaluation
KW - Propensity score
KW - Regression discontinuity
KW - Selection
KW - Subsidized work
KW - Treatment effect
KW - Youth unemployment
UR - http://www.scopus.com/inward/record.url?scp=84890098233&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84890098233&partnerID=8YFLogxK
U2 - 10.1080/01621459.2013.795447
DO - 10.1080/01621459.2013.795447
M3 - Article
AN - SCOPUS:84890098233
SN - 0162-1459
VL - 108
SP - 441
EP - 455
JO - Journal of the American Statistical Association
JF - Journal of the American Statistical Association
IS - 502
ER -