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The reliability of causal inference in observational studies crucially relies on the overlap of baseline covariates (a.k.a. positivity or common support) between different treated groups.
The most straightforward way to check the common support between treated and non-treated individuals is to plot the density distributions of the propensity scores in both groups.
19 The zero probability of return migration in the absence of remittances requires the absence of a common support between the distributions of w o and w h.
The first assumption states a condition that treatment assignment T i and response (Y1 i, Y0 i ) are conditionally independent, given X i ; the second one ensures a common support between the treatment and comparison groups.
In future research, we would like to further explore the effectiveness of interval matching on reducing selection bias in a simulation study by creating different scenarios, such as 1: K matching, matching with replacement, sample size ratio of treatment group to comparison group, and size of common support between treatment and comparison groups.
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The necessary assumptions for this technique are (1) conditional independence and (2) presence of a common support (overlap between propensity score distributions of treatment and comparison groups).
The area of common support (similar propensity scores) between coordinated and non-coordinated groups resulted to be 94%, corresponding to 2314 farms over the 2450 included in FADN, and the balancing property was satisfied at significance level of p < 0.10.
Methods such as regression analysis, matching, 'sharp' regression discontinuity designs, as well solutions relying on the propensity score require the selection on observables assumption and common support for baseline covariates between the treatment groups [7].
The common support region would then lie between 0.0496 and 0.965.
To consider this point, in the robustness check, we re-estimate the model enforcing a common support in personal and job characteristics between immigrants and natives.
As a second check, our model is re-estimated enforcing a common support, in personal and job characteristics, between immigrants and natives.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com