Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2003:19: A simple procedure for the evaluation of treatment effects on duration variables

Jaap H Abbring () and Gerard J van den Berg ()
Additional contact information
Jaap H Abbring: Free University Amsterdam
Gerard J van den Berg: Free University Amsterdam, Tinbergen Institute, IFAU

Abstract: Often, a treatment and the outcome of interest are characterized by the moment they occur, and these moments are realizations of stochastic processes with dependent unobserved determinants. We develop a simple and intuitive method for inference on the treatment effect. The method can be implemented as a graphical procedure or as a straightforward parameter test in an auxiliary univariate single-spell duration model. The method exploits information on the timing of the treatment relative to the outcome that is discarded in binary treatment analyses.

Keywords: Duration analysis; hazard rate; selectivity bias; treatment effect; unobserved heterogeneity

JEL-codes: C14; C31; C41

43 pages, August 11, 2003

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