Correcting for Selective Compliance in a Re-Employment Bonus Experiment
43 Pages Posted: 25 Jul 2001
Date Written: 2001
We propose a two-stage instrumental variable estimator that is consistent if there is selective compliance in the treatment group of a randomized experiment and the outcome variable is a censored duration. The estimator assumes full compliance in the control group. We use the estimator to reanalyze data from the Illinois re-employment bonus experiment.
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