Estimation taking account of sample selection with Stata

Cheti Nicoletti

ISER, University of Essex

2009

### Impact of an endogenous dummy Homogenous treatment effect

y1= earnings for trained people

y0= earnings for non-trained people

d dummy indicating participation to the training program

y=y1 d+y0 (1-d)

y=x+ d+

d*=z +u where d=l(d*>0)

We have a selection problem because of the correlation

between u and . This implies that d is not independent of .

### STATA program for evaluation

Abadie A., Drukker D., Herr J.L., Imbens G.W. (2001), Implementing Matching Estimators for Average Treatment Effects in Stata, The Stata Journal, 1, 1-18 http://ksghome.harvard.edu/~.aabadie.academic.ksg/software.html

Becker S.O., Ichino A. (2002), Estimation of average treatment effects based on propensity scores. The Stata Journal, 2, 358-377http://www.lrz-muenchen.de/~sobecker/pscore.html

Sianesi B. (2001), Implementing Propensity Score Matching Estimators with STATA, UK Stata Users Group, VII Meeting London, http://ideas.repec.org/c/boc/bocode/s432001.html