Assessing Selection Bias in Non-Experimental Estimates of the Returns to Workplace Training
Jan Sauermann () and
Anders Stenberg ()
No 13789, IZA Discussion Papers from Institute of Labor Economics (IZA)
We assess selection bias in estimated returns to workplace training by exploiting a field experiment with random assignment of workers to a one-week training program. We compare experimental estimates of this program with non-experimental estimates that are estimated by using a sample of agents who were selected by management not to participate in the experiment. Our results show that non-experimental estimates are biased, yielding returns about twice as large as the causal effect. When controlling for pre-treatment performance or individual fixed effects, only about one tenth of this bias remains and is even further reduced when applying common support restrictions.
Keywords: returns to training; selection bias; field experiment (search for similar items in EconPapers)
JEL-codes: J24 C93 M53 (search for similar items in EconPapers)
Pages: 36 pages
New Economics Papers: this item is included in nep-exp, nep-lma and nep-ore
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13789
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