Simple Tests for Selection Bias: Learning More from Instrumental Variables

Dan Black, Joonhwi Joo (), Robert LaLonde, Jeffrey Smith and Evan J. Taylor ()
Additional contact information
Joonhwi Joo: University of Chicago
Evan J. Taylor: University of Arizona

No 9346, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We provide simple tests for selection on unobserved variables in the Vytlacil-Imbens-Angrist framework for Local Average Treatment Effects. The tests allow researchers not only to test for selection on either or both of the treated and untreated outcomes, but also to assess the magnitude of the selection effect. The tests are quite simple; undergraduates after an introductory econometrics class should be able to implement these tests. We illustrate our tests with two empirical applications: the impact of children on female labor supply from Angrist and Evans (1998) and the training of adult women from the Job Training Partnership Act (JTPA) experiment.

Keywords: selection; local average treatment effects; instrumental variables (search for similar items in EconPapers)
JEL-codes: C10 C18 J01 J08 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-09
New Economics Papers: this item is included in nep-ecm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Published - published in: Labour Economics, 2022, 79, 102237

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