The Matching Method for Treatment Evaluation with Selective Participation and Ineligibles

Monica Costa Dias (), Hidehiko Ichimura and Gerard J. van den Berg
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Monica Costa Dias: Institute for Fiscal Studies, London

No 3280, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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.

Keywords: job search assistance; selection; regression discontinuity; treatment effect; policy evaluation; propensity score; subsidized work; youth unemployment (search for similar items in EconPapers)
JEL-codes: C21 C14 C31 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-lab
Date: 2008-01

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Related works:
Working Paper: The matching method for treatment evaluation with selective participation and ineligibles (2007)
Working Paper: The matching method for treatment evaluation with selective participation and ineligibles (2008)
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