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The Oaxaca-Blinder unexplained component as a treatment effects estimator

Tymon Słoczyński

No 61, Working Papers from Department of Applied Econometrics, Warsaw School of Economics

Abstract: In this paper I use the National Supported Work (NSW) data to examine the validity of the Oaxaca–Blinder unexplained component as an estimator of the population average treatment effect on the treated (PATT). Precisely, I utilize dataset and variable selections used in previous studies of the NSW data to compare the performance of the Oaxaca–Blinder unexplained component with methods based on the propensity score (Dehejia and Wahba, 1999) and bias-corrected matching estimators (Abadie and Imbens, 2011). I show that in both cases the Oaxaca–Blinder unexplained component performs superior compared to the previously analyzed estimators provided that common support is imposed.

Keywords: decomposition methods; Manpower training; Treatment effects (search for similar items in EconPapers)
JEL-codes: C21 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm
Date: 2012-02-13
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http://kolegia.sgh.waw.pl/pl/KAE/struktura/IE/stru ... Papers/aewp02-12.pdf

Related works:
Journal Article: The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator (2015) Downloads
Working Paper: The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator (2013) Downloads
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