Probability of Causation with Sample Selection: A Reanalysis of the Impacts of Jóvenes en Acción on Formality

10/04/2022

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by   Vitor Possebom, et al.

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This paper identifies the probability of causation when there is sample selection. We show that the probability of causation is partially identified for individuals who are always observed regardless of treatment status and derive sharp bounds under three increasingly restrictive sets of assumptions. The first set imposes an exogenous treatment and a monotone sample selection mechanism. To tighten these bounds, the second set also imposes the monotone treatment response assumption, while the third set additionally imposes a stochastic dominance assumption. Finally, we use experimental data from the Colombian job training program Jóvenes en Acción to empirically illustrate our approach's usefulness. We find that, among always-employed women, at least 12% and at most 19% transitioned to the formal labor market because of the program.