The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator

Tymon Słoczyński

Oxford Bulletin of Economics and Statistics, 2015, vol. 77, issue 4, 588-604

Abstract: type="main" xml:id="obes12075-abs-0001">

In this paper I use the National Supported Work (NSW) data to examine the finite-sample performance of the Oaxaca–Blinder unexplained component as an estimator of the population average treatment effect on the treated (PATT). Precisely, I follow sample and variable selections from Dehejia and Wahba (1999), and conclude that Oaxaca–Blinder performs better than any of the estimators in this influential paper, provided that overlap is imposed. As a robustness check, I consider alternative sample (Smith and Todd, 2005) and variable (Abadie and Imbens, 2011) selections, and present a simulation study which is also based on the NSW data.

Date: 2015
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Related works:
Working Paper: The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator (2013)
Working Paper: The Oaxaca-Blinder unexplained component as a treatment effects estimator (2012)
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