SEMI‐PARAMETRIC ESTIMATION OF PROGRAM IMPACTS ON DISPERSION OF POTENTIAL WAGES

B-Tier
Journal: Journal of Applied Econometrics
Year: 2014
Volume: 29
Issue: 6
Pages: 901-919

Authors (2)

Stacey H. Chen (not in RePEc) Shakeeb Khan (Boston College)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

SUMMARY 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.

Technical Details

RePEc Handle
repec:wly:japmet:v:29:y:2014:i:6:p:901-919
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25