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Bestell-Nr.: SP I 2004-101
AbstractPropensity score matching provides an estimate of the effect of a "treatment" variable on an outcome variable that is largely free of bias arising from an association between treatment status and observable variables. However, matching methods are not robust against "hidden bias" arising from unobserved variables that simultaneously affect assignment to treatment and the outcome variable. One strategy for addressing this problem is the Rosenbaum bounds approach, which allows the analyst to determine how strongly an unmeasured confounding variable must affect selection into treatment in order to undermine the conclusions about causal effects from a matching analysis. Instrumental variables (IV) estimation provides an alternative strategy for the estimation of causal effects, but the method typically reduces the precision of the estimate and has an additional source of uncertainty that derives from the untestable nature of the assumptions of the IV approach. A method of assessing this additional uncertainty is proposed so that the total uncertainty of the IV approach can be compared with the Rosenbaum bounds approach to uncertainty using matching methods. Because the approaches rely on different information and different assumptions, they provide complementary information about causal relationships. The approach is illustrated via an analysis of the impact of unemployment insurance on the timing of reemployment, the postunemployment wage, and the probability of relocation, using data from several panels of the Survey of Income and Program Participation (SIPP).
This article uses panel data from the Survey of Income and Program Participation (SIPP) and the European Community Household Panel (ECHP) for a comparative analysis of workers' post-unemployment earnings trajectories in the United States and 12 Western European countries. Across the study sample of industrialized countries, results of difference-in-difference propensity score matching show post-unemployment earnings losses to be largely permanent and particularly significant for high-wage and older workers as well as for women. The analyses also show that negative effects of unemployment on workers' subsequent earnings are mitigated through either generous unemployment benefit systems or strict labor market regulation. These effects stem partly from favorable behavioral responses that prevent downward occupational and industrial mobility and partly from changes in the overall structure of labor markets favoring the transferability of worker skills between jobs. These positive effects materialize despite the fact that labor market policies tend to successfully protect the core work force from experiencing a job loss in the first place.
Using harmonized longitudinal data from the British Household Panel Survey (BHPS), the German Socio-Economic Panel (GSOEP), and the National Longitudinal Survey of Youth (NLSY), we trace career prospects after motherhood for five cohorts of American, British, and West German women around the 1960s. We establish wage penalties for motherhood between 9% and 18% per child, with wage losses among American and British mothers being lower than those experienced by mothers in Germany. Labor market mechanisms generating the observed wage penalty for motherhood differ markedly across countries, however. For British and American women, work interruptions and subsequent mobility into mother-friendly jobs fully account for mothers' wage losses. In contrast, respective penalties are considerably smaller in Germany, yet we observe a substantial residual wage penalty that is unaccounted for by mothers' observable labor market behavior. We interpret this finding as indicating a comparatively more pronounced role for statistical discrimination against mothers in the German labor market.
Originating in econometrics and statistics, the counterfactual model provides a natural framework for clarifying the requirements for valid causal inference in the social sciences. This article presents the basic potential outcomes model and discusses the main approaches to identification in social science research. It then addresses approaches to the statistical estimation of treatment effects either under unconfoundedness or in the presence of unmeasured heterogeneity. As an update to Winship & Morgan's (1999) earlier review, the article summarizes the more recent literature that is characterized by a broader range of estimands of interest, a renewed interest in exploiting experimental and quasi-experimental designs, and important progress in the areas of semi-and nonparametric estimation of treatment effects, differencein-differences estimation, and instrumental variable estimation. The review concludes by highlighting implications of the recent econometric and statistical literature for sociological research practice.
The authors investigate the relationship between family policy and women's attachment to the labor market, focusing specifically on policy feedback on women's subjective work commitment. They utilize a quasi-experimental design to identify normative policy effects from changes in mothers' work commitment in conjunction with two policy changes that significantly extended the length of statutory parental leave entitlements in Germany. Using unique survey data from the German Socio-Economic Panel and difference-in-differences, triple-differenced, and instrumental variables estimators for panel data, they obtain consistent empirical evidence that increasing generosity of leave entitlements led to a decline in mothers' work commitment in both East and West Germany. They also probe potential mediating mechanisms and find strong evidence for role exposure and norm setting effects. Finally, they demonstrate that policy-induced shifts in mothers' preferences have contributed to. retarding women's labor force participation after childbirth in Germany, especially as far as mothers' return to full-time employment is concerned.
The paper addresses the issue of the driving forces behind recent changes in labour market entry outcomes in Europe. Based on data for 12 European countries from the 1988-1997 European Community Labour Force Survey, the empirical analyses estimate panel data models to assess the effects of cyclical changes in aggregate economic conditions, changing youth cohort sizes, increasing educational expansion and structural changes in labour demand on market entrants unemployment risks and occupational allocation. In general, it is found that unemployment risks have closely followed the evolution of aggregate economic conditions with only little impact of demographic factors.Changes in occupational allocation, in turn, are much dependent on the relative evolution of educational expansion and professionalization tendencies. In addition, these trends do not affect all leavers evenly: the lowest qualified are most heavily affected by cyclical changes in economic conditions, while leavers from tertiary level education have been more strongly affected by trends of changing occupational attainment. Most discomforting, however, increasing labour force professionalization is found to contribute to increasing labour market difficulties among the lowest qualified.
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