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Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection

Author

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  • Doerr Annabelle

    (University of Basel, Basel, Switzerland)

  • Strittmatter Anthony

    (CREST-ENSAE, 5 Avenue Le Chatelier, 91120 Palaiseau, France)

Abstract
We study the identification of channels of policy reforms with multiple treatments and different types of selection for each treatment. We disentangle reform effects into policy effects, selection effects, and time effects under the assumption of conditional independence, common trends, and an additional exclusion restriction on the non-treated. Furthermore, we show the identification of direct- and indirect policy effects after imposing additional sequential conditional independence assumptions on mediating variables. We illustrate the approach using the German reform of the allocation system of vocational training for unemployed persons. The reform changed the allocation of training from a mandatory system to a voluntary voucher system. Simultaneously, the selection criteria for participants changed, and the reform altered the composition of course types. We consider the course composition as a mediator of the policy reform. We show that the empirical evidence from previous studies reverses when considering the course composition. This has important implications for policy conclusions.

Suggested Citation

  • Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    • Handle: RePEc:bpj:jecome:v:10:y:2021:i:1:p:67-88:n:6
    DOI: 10.1515/jem-2019-0012
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    Cited by:

    1. Doerr, Annabelle, 2022. "Vocational training for female job returners - Effects on employment, earnings and job quality," Labour Economics, Elsevier, vol. 75(C).
    2. Doerr, Annabelle, 2022. "Vocational Training for Female Job Returners - Effects on Employment, Earnings and Job Quality," Working papers 2022/02, Faculty of Business and Economics - University of Basel.

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    More about this item

    Keywords

    Difference-in-Differences; mediation analysis; treatment effects evaluation; administrative data; training voucher;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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