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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)

Abstract: 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
Date: 2020-10
New Economics Papers: this item is included in nep-exp, nep-lma and nep-ore
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