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Author: Khan, Shakeeb
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Chen, Stacey H. Khan, Shakeeb |
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Semi-Parametric Estimation of Program Impacts on Dispersion of Potential Wages Journal of Applied Econometrics 29,6 (September/October 2014): 901-919. Also: http://onlinelibrary.wiley.com/doi/10.1002/jae.2351/abstract Cohort(s): Young Men Publisher: Wiley Online Keyword(s): College Education; Modeling, Instrumental Variables; Statistical Analysis; Wages Permission to reprint the abstract has not been received from the publisher. We propose the use of instrumental variables and pairwise matching to identify the average treatment effect on variance in potential outcomes. We show that identifying and estimating program impact on dispersion of potential outcomes in an endogenous-switching model is possible, without using the identification-at-infinity argument, if we impose semi-parametric conditions or shape restrictions on the error structure. In the presence of a multi-valued or continuously distributed instrument, we recommend the pairwise-matching method under a set of symmetry conditions. Simulations and an empirical example show that the matching method is much more precise than the instrumental-variable approach. Copyright © 2013 John Wiley & Sons, Ltd. |
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Bibliography Citation
Chen, Stacey H. and Shakeeb Khan. "Semi-Parametric Estimation of Program Impacts on Dispersion of Potential Wages." Journal of Applied Econometrics 29,6 (September/October 2014): 901-919.
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