Evaluation of the Australian Wage Subsidy Special Youth ...

Evaluation of the Australian Wage Subsidy Special Youth ... Evaluation of the Australian Wage Subsidy Special Youth ...

02.06.2014 Views

206 resp 14 (1.66) (1.27) Catholic 0.061 -0.006 (0.37) (-0.03) Presbyterian 0.322 0.321 (1.34) (1.33) Methodist 0.015 0.262 (0.06) (1.01) Other Christian 0.074 0.057 (0.27) (0.21) Other religion 0.176 0.142 (0.80) (0.58) No religion 0.138 0.145 (0.67) (0.74) Observations 1283 1283 Student’s t statistics in brackets; * significant at 5%; ** significant at 1% Weighted with combined weight for attrition, non-response and survey design. NOTE 1: Results Column 1 are sourced from Table 4 and Table 5 pages 18-21 Richardson (1998). Base categories: European ethnic origin, state interviewed in 1984 NSW/ACT, government school, highest qualification in 1984 year 10 at school, longest job by 1984 is 1 year, lived mostly in state capital city until respondent aged 14, English is first language, father clerical worker when respondent aged 14, mother clerical worker when respondent aged 14, religion brought up in is Anglican.

207 6.2 Results of weighting the PSM Weighting the Heckman bivariate probit is a relatively simple task of ensuring the weights are used in estimating the model. In contrast, weighting the PSM requires a little more attention. Frölich et al. (2001) is one of the few applications of PSM found where weights have been applied to reflect the selective nature of the sample surveyed. As the application of weights in PSM is not generally treated in the literature, details of the approach are made clear. 146 6.2.1 Weighting protocol In order to correctly adjust the PSM for the attrition, two steps need to be taken. The weighting protocol steps are shown in Table 6.2. The probit model of SYETP used to estimate the propensity scores, must be weighted with the attrition weight. The common support for the weighted propensity needs to be checked. Once again, the minimum and maximum of the weighted SYETP propensity scores are used to define the common support. Once the matches have been found for these estimated propensity scores, then the final match needs to be re-weighted. The balance of the treatment group in the population is the only consideration. The weights that formerly applied to the comparison cases are then discarded. Instead, the weight that applies to the SYETP case to which they are matched is donated to the comparison case. In this way, the final match is weighted using only the weights of the treated. This is done so that only the characteristics of the treated have influence, as the parameter of interest is the impact of treatment on the treated. One other important step also applies when weighting. In assessing the standardized bias for the performance of the match, weighted mean and variance statistics must be used to construct the standardized bias. Table 6.2 Weighting protocol steps • Weight the propensity probit • Weight the final match, using only the weight of the treated; where comparison case used with replacement, sum the applicable treated case weights. 146 I am grateful to Michael Lechner who in response to an email query made clear the steps in the protocol.

206<br />

resp 14<br />

(1.66) (1.27)<br />

Catholic 0.061 -0.006<br />

(0.37) (-0.03)<br />

Presbyterian 0.322 0.321<br />

(1.34) (1.33)<br />

Methodist 0.015 0.262<br />

(0.06) (1.01)<br />

O<strong>the</strong>r Christian 0.074 0.057<br />

(0.27) (0.21)<br />

O<strong>the</strong>r religion 0.176 0.142<br />

(0.80) (0.58)<br />

No religion 0.138 0.145<br />

(0.67) (0.74)<br />

Observations 1283 1283<br />

Student’s t statistics in brackets; * significant at 5%; ** significant at 1%<br />

Weighted with combined weight for attrition, non-response and survey design.<br />

NOTE 1: Results Column 1 are sourced from Table 4 and Table 5 pages 18-21 Richardson (1998).<br />

Base categories: European ethnic origin, state interviewed in 1984 NSW/ACT, government school, highest<br />

qualification in 1984 year 10 at school, longest job by 1984 is 1 year, lived mostly in state capital city until<br />

respondent aged 14, English is first language, fa<strong>the</strong>r clerical worker when respondent aged 14, mo<strong>the</strong>r<br />

clerical worker when respondent aged 14, religion brought up in is Anglican.

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