Analysis of the bias of Matching and Difference-in-Difference under alternative earnings and selection processes
不同收入与选择过程下匹配和双重差分的偏差分析
Matching and Difference in Difference (DID) are two widespread methods that use pre-treatment outcomes to correct for selection bias. I detail the sources of bias of both estimators in a model of earnings dynamics and entry into a Job Training Program (JTP) and I assess their performances using Monte Carlo simulations of the model calibrated with realistic parameter values. I find that Matching generally underestimates the average causal effect of the program and gets closer…