The effect of sample selection and initial conditions in duration models: Evidence from experimental data on training

John Ham, Robert J. LaLonde

Research output: Contribution to journalArticle

Abstract

We investigate the separate effects of a training program on the duration of participants' subsequent employment and unemployment spells. This program randomly assigned volunteers to treatment and control groups. However, the treatments and controls experiencing subsequent employment and unemployment spells are not generally random (or comparable) subsets of the initial groups because the sorting process into subsequent spells is very different for the two groups. Standard practice in duration models ignores this sorting process, leading to a sample selection problem and misleading estimates of the training effects. We propose an estimator that addresses this problem and find that the program studied, the National Supported Work Demonstration, raised trainees' employment rates solely by lengthening their employment durations.

Original languageEnglish (US)
Pages (from-to)175-205
Number of pages31
JournalEconometrica
Volume64
Issue number1
DOIs
StatePublished - Jan 1 1996

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Sample selection
Initial conditions
Duration models
Sorting
Unemployment
Volunteers
Estimator
Training program
Employment rate

Keywords

  • Duration models
  • Job training
  • Sample selection

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

The effect of sample selection and initial conditions in duration models : Evidence from experimental data on training. / Ham, John; LaLonde, Robert J.

In: Econometrica, Vol. 64, No. 1, 01.01.1996, p. 175-205.

Research output: Contribution to journalArticle

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