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The matching method for treatment evaluation with selective participation and inelligibles

Costa Dias, M.; Ichimura, H.; van den Berg, G.J.; (2007) The matching method for treatment evaluation with selective participation and inelligibles. (cemmap Working Papers CWP33/). Institute for Fiscal Studies: London, UK. Green open access

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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 first examine the performance of matching versus regression-discontinuity estimation in the sharp age-discontinuity design of the NDYP job search assistance program for young unemployed in the UK. Next, 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 ineffectiveness of subsidized work in moving individuals into employment.

Type: Working / discussion paper
Title: The matching method for treatment evaluation with selective participation and inelligibles
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.cemmap.ac.uk/publications.php
Language: English
Keywords: Propensity score, policy evaluation, treatment effect, regression discontinuity, selection, job search assistance, subsidized work, youth unemployment
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/14670
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