RT Journal Article
SR Electronic
T1 An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 319
OP 345
DO 10.3368/jhr.41.2.319
VO 41
IS 2
A1 Diaz, Juan Jose
A1 Handa, Sudhanshu
YR 2006
UL http://jhr.uwpress.org/content/41/2/319.abstract
AB Not all policy questions can be addressed by social experiments. Nonexperimental evaluation methods provide an alternative to experimental designs but their results depend on untestable assumptions. This paper presents evidence on the reliability of propensity score matching (PSM), which estimates treatment effects under the assumption of selection on observables, using a social experiment designed to evaluate the PROGRESA program in Mexico. We find that PSM performs well for outcomes that are measured comparably across survey instruments and when a rich set of control variables is available. However, even small differences in the way outcomes are measured can lead to bias in the technique.