Microeconometric evaluation of active labour market policies - SFI
Microeconometric evaluation of active labour market policies - SFI
Microeconometric evaluation of active labour market policies - SFI
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Part II: Standard estimators used in policy <strong>evaluation</strong><br />
Before-after, difference in difference, fixed effects, etc.<br />
- exploits information for the participants before participation<br />
- exploits information for the nonparticipants before and after participation<br />
- effect homogeneity (within: strict exogeneity)<br />
- even ‘nonparametric’ version requires functional form assumptions (e.g. required<br />
assumption may hold in levels but not in log’s etc.)<br />
- having a panel to analyse does not mean that typical panel estimators must be used<br />
(matching or standard IV may be superior)<br />
Control function estimators (Heckit, other model with ‘unobserved<br />
heterogeneity’)<br />
- nonparametric version identical to IV (+functional forms)<br />
- even parametric version needs exclusion restriction to produce stable estimates