The Microeconometric Estimation of Treatment Effects - An Overview

Marco Caliendo and Reinhard Hujer ()
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Reinhard Hujer: Goethe University Frankfurt

No 1653, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The need to evaluate the performance of active labour market policies is not questioned any longer. Even though OECD countries spend significant shares of national resources on these measures, unemployment rates remain high or even increase. We focus on microeconometric evaluation which has to solve the fundamental evaluation problem and overcome the possible occurrence of selection bias. When using non-experimental data, different evaluation approaches can be thought of. The aim of this paper is to review the most relevant estimators, discuss their identifying assumptions and their (dis-)advantages. Thereby we will present estimators based on some form of exogeneity (selection on observables) as well as estimators where selection might also occur on unobservable characteristics. Since the possible occurrence of effect heterogeneity has become a major topic in evaluation research in recent years, we will also assess the ability of each estimator to deal with it. Additionally, we will also discuss some recent extensions of the static evaluation framework to allow for dynamic treatment evaluation.

Keywords: matching; effect heterogeneity; evaluation; dynamic treatments (search for similar items in EconPapers)
JEL-codes: C40 H43 J68 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2005-07
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (22)

Published - published in: Allgemeines Statistisches Archiv / Journal of the German Statistical Society, 2006, 90 (1), 197-212

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Related works:
Chapter: The Microeconometric Estimation of Treatment Effects — An Overview (2006)
Journal Article: The microeconometric estimation of treatment effects—An overview (2006)
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