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Analysis of IPSS Selection and Switching Outcomes in Treatment Effects

This study explores the IPSS selection and switching outcomes regarding treatment effects, focusing on the probabilities of varying treatment outcomes given specific conditions and covariates. It investigates the implications of treatment status on work and non-work scenarios, examining how the reservation wage influences these dynamics. Using rigorous statistical methods, we analyze the relationships between different potential outcomes under various settings, particularly emphasizing the importance of covariates in predicting the probabilities of treatment outcomes.

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Analysis of IPSS Selection and Switching Outcomes in Treatment Effects

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  1. IPSS Selection/ Switching Outcome: y Treatment: z censored P(y0∈B|x,z0) z=0 P(y1∈B | x,z0) Selection P(y0∈B | x,z1) z=1 P(y1∈B | x,z1)

  2. IPSS Selection/ Switching

  3. IPSS Selection/ Switching

  4. IPSS Selection/ Switching z=1 work z=0 non-work wage Reservation wage

  5. IPSS Selection/ Switching

  6. IPSS Selection/ Switching P(y1<t|x,z0) < P(y0<t|x,z0) y0 y1 t y

  7. IPSS Selection/ Switching

  8. IPSS Selection/ Switching

  9. IPSS Selection/ Switching If z=1 then it has to be true P(y0>t|x,z1) < P(y1> t|x,z1) y0 y1 t y

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