Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/102353 
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers No. 8450
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Causal effects of a policy change on hazard rates of a duration outcome variable are not identified from a comparison of spells before and after the policy change, if there is unobserved heterogeneity in the effects and no model structure is imposed. We develop a discontinuity approach that overcomes this by considering spells that include the moment of the policy change and by exploiting variation in the moment at which different cohorts are exposed to the policy change. We prove identification of average treatment effects on hazard rates without model structure. We estimate these effects by kernel hazard regression. In effect, we merge duration analysis and discontinuity analysis. We use the introduction of the NDYP program for young unemployed individuals in the UK to estimate average program participation effects on the exit rate to work as well as anticipation effects.
Subjects: 
policy evaluation
hazard rate
identification
causality
regression discontinuity
selectivity
kernel hazard estimation
local linear regression
average treatment effect
job search assistance
youth unemployment
JEL: 
J64
C14
C25
Document Type: 
Working Paper

Files in This Item:
File
Size
418.02 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.