Language ability may not only affect the earnings of the individual, but the participation to participate in the labor market or becoming employed as well. It may also affect selection of people into economic sectors and occupation. In this paper the effects of language ability on earnings are...

Using a rich and unique combined administrative-survey dataset, this paper explores how sensitive propensity score (PS) matching estimates of Active Labor Market Policies (ALMPs) based on the selection-on-observables assumption are to typically unobserved covariates. Using a sample of German...

The dissertation investigates determinants of the decision to enter tertiary education. Three essays analyze different aspects related to the topic. The first essay compares the effect of parental education and parental income in the relevant age for access to tertiary education. Econometric...

We analyze the decision to announce an open market share repurchase and the share price reaction to the announcement. We use a conditional estimation approach which takes into account that the repurchase decision is made rationally and that, consequently, there is a potential selection bias....

Many commonly used treatment effects estimators rely on the unconfoundedness assumption ("selection on observables") which is fundamentally non-testable. When evaluating the effects of labor market policies, researchers need to observe variables that affect both treatment participation and labor...

We analyze the decision to announce an open market share repurchase and the share price reaction to the announcement. We use a conditional estimation approach which takes into account that the repurchase decision is made rationally and that, consequently, there is a potential selection bias....

Many commonly used treatment effects estimators rely on the unconfoundedness assumption ("selection on observables") which is fundamentally non-testable. When evaluating the effects of labor market policies, researchers need to observe variables that affect both treatment participation and labor...

The classical Heckman (1976, 1979) selection correction estimator (heckit) is misspecified and inconsistent if an interaction of the outcome variable and an explanatory variable matters for selection. To address this specification problem, a full information maximum likelihood estimator and a...