Correcting for Selective Compliance in a Re-employment Bonus Experiment


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volume 125, issue 1-2 SPEC. ISS. pp 77-111.
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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 re-analyze data from the Illinois re-employment bonus experiment.



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