Assessing Selection Bias in Non-experimental Estimates of the Returns to Workplace Training

Jan Sauermann and Anders Stenberg

VfS Annual Conference 2021 (Virtual Conference): Climate Economics from Verein für Socialpolitik / German Economic Association

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: C93 J24 M53 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-exp
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https://www.econstor.eu/bitstream/10419/242344/1/vfs-2021-pid-48858.pdf (application/pdf)

Related works:
Working Paper: Assessing Selection Bias in Non-Experimental Estimates of the Returns to Workplace Training (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc21:242344

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