uu.seUppsala University Publications
Change search
ReferencesLink to record
Permanent link

Direct link
Duration dependence versus unobserved heterogeneity in treatment effects: swedish labor market training AND the transition rate to employment
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
2013 (English)In: Journal of applied econometrics (Chichester, England), ISSN 0883-7252, E-ISSN 1099-1255, Vol. 28, no 2, 325-351 p.Article in journal (Refereed) Published
Abstract [en]

The effect of a treatment on the hazard rate of a duration outcome may depend on the elapsed time since treatment. In addition, treatment effects may be heterogeneous across agents. The former gives rise to duration dependence of the treatment effect, whereas unobserved heterogeneity gives rise to spurious duration dependence of the observable hazard rate. We develop a model allowing for duration dependence and unobserved heterogeneity in the treatment effect. The model incorporates a Timing of Events model and allows for selectivity on unobservables. We prove identification, exploiting variation in the timing of treatment and outcome. In the application we analyze the effects of the Swedish vocational employment training program on the individual transition rate from unemployment to work. We demonstrate the appropriateness of the approach by studying the enrollment process. The data cover the population and include multiple unemployment spells for many individuals. The results indicate a large, significantly positive effect on exit to work shortly after exiting the program. The effect at the individual level diminishes after some weeks. When taking account of the time spent in the program, the effect on the mean unemployment duration is small.

Place, publisher, year, edition, pages
2013. Vol. 28, no 2, 325-351 p.
National Category
Social Sciences
URN: urn:nbn:se:uu:diva-197377DOI: 10.1002/jae.2263ISI: 000315094600007OAI: oai:DiVA.org:uu-197377DiVA: diva2:613735
Available from: 2013-04-01 Created: 2013-03-25 Last updated: 2013-04-01Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text
By organisation
Office of Labour Market Policy Evaluation
In the same journal
Journal of applied econometrics (Chichester, England)
Social Sciences

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 136 hits
ReferencesLink to record
Permanent link

Direct link