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Combining information from Heckman and matching estimators: Testing and controlling for hidden bias

Makepeace, Gerald Henry and Peel, Michael John 2013. Combining information from Heckman and matching estimators: Testing and controlling for hidden bias. Economics Bulletin 33 (3) , pp. 2422-2436.

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Abstract

We demonstrate how the Heckman methodology can be applied to the Rosenbaum sensitivity model and the Rubin matched difference estimator. We develop a statistical test of the conditional independence assumption (CIA), based on Heckit for matched pairs. If the CIA is rejected, the method facilitates the estimation of matched treatment effects adjusted for hidden bias. We illustrate this methodology empirically for the full-time/part-time pay gap for British women. The proposed method has clear utility in establishing whether propensity score matched treatment estimates are prone to unobserved selection bias and for controlling for such bias

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
Uncontrolled Keywords: matching, Rosenbaum bounds, Heckit, unobserved bias, women's part-time pay penalty JEL: C1 - Econometric and Statistical Methods: General J3 - Wages, Compensation, and Labor Costs: General
Last Modified: 15 Aug 2018 20:40
URI: http://orca.cf.ac.uk/id/eprint/51190

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