Self-Sufficiency Project (SSP) – Evaluating Search and Matching Models Using Experimental Data


This working paper introduces an innovative test of the quantitative performance of search and matching models that uses information that is becoming available through social experiments. It presents a prototypical Pissarides matching model and calibrates it to control group data from the Self-Sufficiency Project (SSP). Then a program group is simulated from a randomized experiment within the model, and the outcomes are compared with those of the program group from SSP to determine whether the model is an appropriate tool to use in estimating the behavioural response to SSP.