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Update propensity_score_matching.md #212

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11 changes: 5 additions & 6 deletions Model_Estimation/Matching/propensity_score_matching.md
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Expand Up @@ -127,15 +127,14 @@ match_data = match.data(match)
#Check the dimensions.
dim(match_data)

##Step Four: Conduct Analysis using the new sample.
##Turn marital status into a factor variable so that we can use it in our regression
match_data = match_data %>% mutate(marital_status = as.factor(marital_status))
#Turn married into numeric variables
match_data = match_data %>% mutate(married = 1*(marital_status == "Married"))

##We can now get the treatment effect of smoking on gross income with and without controls
##We can now get the treatment effect of smoking on married status with and without controls
# Note these standard errors will be incorrect, see Caliendo and Kopeinig (2008) for fixes
# https://onlinelibrary.wiley.com/doi/full/10.1111/j.1467-6419.2007.00527.x
lm_nocontrols = lm(marital_status ~ smoke, data= match_data)
lm_nocontrols = lm(married ~ smoke, data= match_data)

#With controls, standard errors also wrong here
lm_controls =lm(marital_status ~ smoke+age+gender+ethnicity+marital_status, data=match_data)
lm_controls =lm(married ~ smoke+age+gender+ethnicity, data=match_data)
```