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Sharp Bounds for the Marginal Treatment Effect with Sample Selection

Vitor Possebom

arXiv 17 Apr 2019 · Econometrics

arXiv:1904.08522 · PDF · DOI · OpenAlex · Extracted main text

Abstract

I analyze treatment effects in situations when agents endogenously select into the treatment group and into the observed sample. As a theoretical contribution, I propose pointwise sharp bounds for the marginal treatment effect (MTE) of interest within the always-observed subpopulation under monotonicity assumptions. Moreover, I impose an extra mean dominance assumption to tighten the previous bounds. I further discuss how to identify those bounds when the support of the propensity score is either continuous or discrete. Using these results, I estimate bounds for the MTE of the Job Corps Training Program on hourly wages for the always-employed subpopulation and find that it is decreasing in the likelihood of attending the program within the Non-Hispanic group. For example, the Average Treatment Effect on the Treated is between $.33 and $.99 while the Average Treatment Effect on the Untreated is between $.71 and $3.00.

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79
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Lee (2009) `Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects', The Review of Economic Studies 76, pp1.000144100%
2Mogstad, Santos \ Torgovitsky (2018) `Using Instrumental Variables for Inference about Policy Relevant Treatment Effects', Econometrica 86(5), pp1.000124100%
3Chen, Flores \ Flores-Lagunes (2017) `Going beyond LATE: Bounding Average Treatment Effects of Job Corps Training', Journal of Human Resources1.00063100%
4Chen \ Flores (2015) `Bounds on Treatment Effects in the Presence of Sample Selection and Noncompliance: The Wage Effects of Job Corps', Journal of B…0.98421595%
5Brinch, Mogstad \ Wiswall (2017) `Beyond LATE with a Discrete Instrument', Journal of Political Economy 125(4), pp0.97614693%
6Machado, Shaikh \ Vytlacil (2018) Instrumental Variables and the Sign of the Average Treatment Effect0.93511582%
7Heckman, Urzua \ Vytlacil (2006) `Understanding Instrumental Variables in Models with Essential Heterogeneity', The Review of Economics and Statistics 88(3), pp0.87452100%
8Flores-Lagunes, Gonzales \ Neumann (2010) `Learning but no Earning? The Impact of Job Corps Training on Hispanic Youth', Economic Inquiry 48(3), pp0.81142100%
9Heckman \ Vytlacil (1999) `Local Instrumental Variables and Latent Variable Models for Identifying and Bounding Treatment Effects', Proceedings of the Nat…0.81142100%
10Blanco, Flores \ Flores-Lagunes (2013) `Bounds on Average and Quantile Treatment Effects of Job Corps Training on Wages', Journal of Human Resources 48(3), pp0.73732100%

Showing the top 10 of 79 scored citations.