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Assessing the employment effects of vocational training using a one-factor model

[journal article]

Andrén, Daniela; Andrén, Thomas

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Abstract Matching estimators use observed variables to adjust for differences between groups to eliminate sample selection bias. When minimum relevant information is not available, matching estimates are biased. If access to data on usually unobserved factors that determine the selection process is unavailable, other estimators should be used. This study advocates the one-factor control function estimator that allows for unobserved heterogeneity with factor-loading technique. Treatment effects of vocational training in Sweden are estimated with mean and distributional parameters, and then compared with matching estimates. The results indicate that unobservables slightly increase the treatment effect for those treated.
Classification Vocational Training, Adult Education; Labor Market Policy
Free Keywords vocational training; sorting; unobserved heterogeneity; one-factor model; matching estimator
Document language English
Publication Year 2006
Page/Pages p. 2469-2486
Journal Applied Economics, 38 (2006) 21
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)