Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161831 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6392
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We provide simple tests for selection on unobserved variables in the Vytlacil-Imbens-Angrist framework for Local Average Treatment Effects. The tests allow researchers not only to test for selection on either or both of the treated and untreated outcomes, but also to assess the magnitude of the selection effect. The tests are quite simple; undergraduates after an introductory econometrics class should be able to implement these tests. We illustrate our tests with two empirical applications: the impact of children on female labor supply from Angrist and Evans (1998) and the impact of training on adult women from the Job Training Partnership Act (JTPA) experiment.
Subjects: 
instrumental variable
local average treatment effect
selection
test
Document Type: 
Working Paper
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