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Propensity Score Matching

Propensity score matching (PSM) is a statistical technique used in the economics of education to estimate the effects of an intervention (e.g., tutoring, dropout prevention, class-size reduction, job training) using observational data where assignment to the intervention occurs naturally and is nonrandom. PSM forms an observationally similar group of individuals using a propensity score (PS). The PS is the probability that an individual receives the intervention given a set of observed variables measured before the intervention. The PS is used to make the treated group and the comparison group similar on observed variables. This entry discusses why PSM is used and how it is implemented, describes the challenges, and concludes with a list of software to implement PSM.

Why Use PSM?

PSM is a possible alternative ...

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