11

Apparently this is called attrition bias. It's very similar to survivorship bias. This paper suggest correcting for it using Heckman correction. Propensity score matching may also help somewhat. My experience with both has been mixed, but they are commonly used. You should figure out what exact approach is most appropriate for your setting. One last edit: ...


7

The situation is given in the following picture The black line is the true conditional mean $E(y|x)$. If we truncate the data, all observations above the truncation $Y^A$ are not observed. For low values of $x$, we will observe (on average) lower values of $y$ than we would without the truncation. As such, when $x$ is low, the observed conditional mean ...


6

I think this paper might be useful to you. It's a job market paper by one of Heckman's students at UChicago, named Rodrigo Pinto. The paper is titled "Selection Bias in a Controlled Experiment: The Case of Moving to Opportunity." In the MTO experiment, the voucher assignment mechanism was random but only approximately half that received the voucher ended up ...


4

Another thing you can look at is "Intention-to-treat analysis". From Wikipedia, An intention-to-treat (ITT) analysis of the results of an experiment is based on the initial treatment assignment and not on the treatment eventually received. ITT analysis is intended to avoid various misleading artifacts that can arise in intervention research such as non-...


3

What you are referring to is two-stage least squares. This is an instrumental variable commonly applied to correct for endogeniety and selection bias. It is a pretty hot topic in economics at the moment and, when applied correctly, can be very useful and will remove the selection bias. There are a few conditions and assumptions - Suppose you want to ...


2

There is no fundamental difference between the choice of occupation and say region. In fact, there exists a large literature in migration that builds on Roy's model, starting with Borjas (1987). I'd argue that ideally you'd like to correct for self- selection/ sorting in all choice dimension. In practice this can be hard/ cumbersome/ impossible to do. Why ...


1

This looks challenging, and the following would only work in circumstances where: Reliable estimates can be made of how long each completed project should have taken to complete. Good records are maintained of the progress of individual projects, enabling assessments to be made of the form "Project A was X% complete after n years". Suppose two projects ...


1

The idea is that education is only a partial measure of ability. If high ability people select into certain occupations because the returns to ability are higher in those occupations, then a simple Mincer regression will conflate the returns to ability and the returns of the occupation.You need to account for the selection effect to get an unbiased estimate ...


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