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In a study of vocational training effects on earnings, researchers use propensity score matching combined with outcome regression (doubly-robust estimation). For a participant:
- Propensity score: P(Training=1|X) = 0.70
- Observed earnings (trained): Y = $36,000
- From outcome regression, predicted earnings if not trained:
- Matched non-participant's earnings: $31,500
Which estimates of the treatment effect are reasonable?
In a study of vocational training effects on earnings, researchers use propensity score matching combined with outcome regression (doubly-robust estimation). For a participant:
- Propensity score: P(Training=1|X) = 0.70
- Observed earnings (trained): Y = $36,000
- From outcome regression, predicted earnings if not trained:
- Matched non-participant's earnings: $31,500
Which estimates of the treatment effect are reasonable?