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Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects

LEE, DAVID S.·2009·Review of Economic Studies

Abstract

This paper empirically assesses the wage effects of the Job Corps program, one of the largest federally funded job training programs in the U.S. Even with the aid of a randomized experiment, the impact of a training program on wages is difficult to study because of sample selection, a pervasive problem in applied microeconometric research. Wage rates are only observed for those who are employed, and employment status itself may be affected by the training program. This paper develops an intuitive trimming procedure for bounding average treatment effects in the presence of sample selection. In contrast to existing methods, the procedure requires neither exclusion restrictions nor a bounded support for the outcome of interest. Identification results, estimators, and their asymptotic distribution are presented. The bounds suggest that the program raised wages, consistent with the notion that the Job Corps raises earnings by increasing human capital, rather than solely through encouraging work. The estimator is generally applicable to typical treatment evaluation problems in which there is nonrandom sample selection/attrition. Copyright Copyright © 2009 The Review of Economic Studies Limited.

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Research works printed but not linked: 36

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Metadata

Authors
LEE, D. S.
Venue
Review of Economic Studies
Published
2009-07
Volume
76
Issue
3
Pages
1071-1102
ISSN
  • 0034-6527 (ISSN-L)
  • 1467-937X
OpenAlex
W2890543633
Cited by
1,399
References
6
FWCI
21.86
Type
journal article
Language
en
Open access
closed

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LEE, D. S. (2009). Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects. Review of Economic Studies. https://doi.org/10.1111/j.1467-937x.2009.00536.x

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