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Comparing Treatments across Labor Markets: An Assessment of Nonexperimental Multiple-Treatment Strategies

Carlos A. Flores1; Oscar A. Mitnik2

1 California Polytechnic State University at San Luis Obispo · 2 Federal Deposit Insurance Corporation and IZA

The Review of Economics and Statistics 2013

Abstract We study the effectiveness of nonexperimental strategies in adjusting for comparison group differences when using data from several programs, each implemented at a different location, to compare their effect if implemented at alternative locations. First, we adjust for individual characteristics differences simultaneously across all groups using unconfoundedness-based and conditional difference-in-difference methods for multiple treatments. Second, we adjust for differences in local economic conditions and stress their role after program participation. Our results show that it is critical to have sufficient overlap across locations in both dimensions and illustrate the difficulty of adjusting for local economic conditions that differ greatly across locations.

DOI
10.1162/rest_a_00373
Volume
95 (5)
Pages
1691-1707
Language
en
Export
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