Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141541
Authors: 
van den Berg, Gerard J.
Bonev, Petyo
Mammen, Enno
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9782
Abstract: 
We develop a nonparametric instrumental variable approach for the estimation of average treatment effects on hazard rates and conditional survival probabilities, without model structure. We derive constructive identification proofs for average treatment effects under noncompliance and dynamic selection, exploiting instrumental variation taking place during ongoing spells. We derive asymptotic distributions of the corresponding estimators. This includes a detailed examination of noncompliance in a dynamic context. In an empirical application, we evaluate the French labor market policy reform PARE which abolished the dependence of unemployment insurance benefits on the elapsed unemployment duration and simultaneously introduced additional active labor market policy measures. The estimated effect of the reform on the survival function of the duration of unemployment duration is positive and significant. Neglecting selectivity leads to an underestimation of the effects in absolute terms.
Subjects: 
hazard rate
duration variable
treatment effects
survival function
noncompliance
regression discontinuity design
unemployment
labor market policy reform
active labor market policy
unemployment benefits
JEL: 
C14
C41
J64
J65
Document Type: 
Working Paper

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