Treatment evaluation with selective participation and ineligibles

Monica Costa Dias, Hidehiko Ichimura, Gerard J. van den Berg

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)441-455
Number of pages15
JournalJournal of the American Statistical Association
Volume108
Issue number502
DOIs
StatePublished - Dec 16 2013
Externally publishedYes

Keywords

  • Matching methods
  • Policy evaluation
  • Propensity score
  • Regression discontinuity
  • Selection
  • Subsidized work
  • Treatment effect
  • Youth unemployment

ASJC Scopus subject areas

  • Statistics and Probability
  • Statistics, Probability and Uncertainty

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