TY - RPRT AU - Millimet, Daniel L. AU - Tchernis, Rusty TI - Minimizing Bias in Selection on Observables Estimators When Unconfoundness Fails PY - 2008/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 3632 UR - https://www.iza.org/publications/dp3632 AB - We characterize the bias of propensity score based estimators of common average treatment effect parameters in the case of selection on unobservables. We then propose a new minimum biased estimator of the average treatment effect. We assess the finite sample performance of our estimator using simulated data, as well as a timely application examining the causal effect of the School Breakfast Program on childhood obesity. We find our new estimator to be quite advantageous in many situations, even when selection is only on observables. KW - selection on unobservables KW - unconfoundedness KW - treatment effects KW - propensity score KW - bias ER -