Dynamic Selection Bias in Duration Models
Uncorrected raw Kaplan-Meier hazard rates provide only a lower bound on treatment efficacy due to dynamic selection, whereas MPH duration models correctly isolate true 20–40% exit rate increases.
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Uncorrected raw Kaplan-Meier hazard rates provide only a lower bound on treatment efficacy due to dynamic selection, whereas MPH duration models correctly isolate true 20–40% exit rate increases.
Model estimations consistently identified a distinct subpopulation of 1% to 2% 'immune' individuals exhibiting a zero exit rate from unemployment, whose separation was required to accurately identify policy impacts among the remaining population.