Endogenous Exit Bias in Training Programs for Unemployed Workers
11 Pages Posted: 26 May 2012
This paper assesses the importance of reverse causality when evaluating the impact of training duration for unemployed workers. We use planned duration as an instrumental variable for actual duration. Our results suggest that the potential endogeneity of exits seems to be only relevant in the lower and upper part of the treatment duration distribution.
Keywords: treatment duration, local average treatment effect, dropouts
JEL Classification: C21, C26, J67
Suggested Citation: Suggested Citation