I am regressing the binary variable NEET(not in education or training) on past vocational training including controls and state fixed effects. Since the vocational training variable can be affected by ability, I want to estimate the selection on unobservables, the criterion used by Oster (2019).
IS the process correct? How do I interpret the results? I am getting a negative delta
Code:
regress neet_t365_july i.urban i.male mpce i.unmarried i.religion i.social_group i.state i.edulevel##i.pastvoc365 [pweight = pop_weight] if majorstate==1, vce(cluster fsu) psacalc beta 1.pastvoc365, delta(1) rmax(`rmax_val') * 4. Calculate the breakdown delta (the selection required to drive the treatment effect to zero) psacalc delta 1.pastvoc365, rmax(`rmax_val')
