Cited by 6,238Advanced Causal Inference TechniquesEvaluation and Performance AssessmentSchool Choice and Performance

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SOME PRACTICAL GUIDANCE FOR THE IMPLEMENTATION OF PROPENSITY SCORE MATCHING

Caliendo, Marco, Kopeinig, Sabine·2008·Journal of Economic Surveys

DOI 10.1111/j.1467-6419.2007.00527.x

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Abstract

Propensity score matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin with, a first decision has to be made concerning the estimation of the propensity score. Following that one has to decide which matching algorithm to choose and determine the region of common support. Subsequently, the matching quality has to be assessed and treatment effects and their standard errors have to be estimated. Furthermore, questions like ‘what to do if there is choice‐based sampling?’ or ‘when to measure effects?’ can be important in empirical studies. Finally, one might also want to test the sensitivity of estimated treatment effects with respect to unobserved heterogeneity or failure of the common support condition. Each implementation step involves a lot of decisions and different approaches can be thought of. The aim of this paper is to discuss these implementation issues and give some guidance to researchers who want to use PSM for evaluation purposes.

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Authors: Caliendo, M., & Kopeinig, S.
Affiliations: IZA - Institute of Labor Economics (DE)
ORCID: Caliendo, Marco
Venue: Journal of Economic Surveys
Publisher: Wiley
Published: 2008-01-31
Volume: 22
Issue: 1
Pages: 31-72
ISSN: 0950-0804 (ISSN-L)
1467-6419
DOI: 10.1111/j.1467-6419.2007.00527.x
OpenAlex: W2159805452
Cited by: 6,238
References: 111
Citations by year: 2026: 382 · 2025: 443 · 2024: 428 · 2023: 426 · 2022: 459 · 2021: 455 · 2020: 430 · 2019: 401 · 2018: 396 · 2017: 362 · 2016: 341 · 2015: 338 · 2014: 367 · 2013: 261 · 2012: 234
FWCI: 143.00
Type: journal article
Language: en
Open access: closed
Licence: onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations: Journal of Economic Surveys (publishedVersion)
Topics: Physical Sciences › Mathematics › Statistics and Probability › Advanced Causal Inference Techniques
Social Sciences › Public Administration › Evaluation and Performance Assessment
Social Sciences › Education › School Choice and Performance
Keywords: propensity score matching, causal treatment effects, common support, choice-based sampling, unobserved heterogeneity, sensitivity analysis, labour market policy evaluation

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SOME PRACTICAL GUIDANCE FOR THE IMPLEMENTATION OF PROPENSITY SCORE MATCHING

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