PROPENSITY SCORE IN OBSERVATIONAL STUDIES AND AN APPLICATION
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Research Article
VOLUME: 20 ISSUE: 2
P: 89 - 104
December 2018

PROPENSITY SCORE IN OBSERVATIONAL STUDIES AND AN APPLICATION

Trakya Univ J Soc Sci 2018;20(2):89-104
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Received Date: 04.05.2018
Accepted Date: 09.10.2018
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Abstract

The researcher has no control over the units which are assigned to experiment and control groups in the studies based on the observation. This situation will result in the differences of the units in terms of both demographic features and covariates thus there is the possibility of deviations in the estimations. The Propensity Score, expressed as the conditional probability of the effect of the action relative to the observed common variables. This scores balance the units in both groups and reduces in the estimation. For the study, two kinds of SMEs were chosen. On the one side, there are SMEs that has ISO 9001:2000 QMS on the other side; there are SMEs that doesn’t have it. They both have the same capital growth and the same number of employer. How the “satisfaction, belonging and the problems of the SME workers” feelings of employers working in these SMEs differ in the SMEs that have ISO 9001:2000 QMS document and the SMEs that doesn’t have this document? As a result, in the test results carried out before propensity matching, the outcome was: between the employers who have ISO 9001:2000 QMS and the ones who don’t, there is a meaningful difference in terms of “satisfaction and the problems of the SME workers”. However, there is not a meaningful difference in terms of belonging. After propensity matching is carried out, among the SME workers mentioned above differences are meaningful in terms of “satisfaction, belonging and the problems of the SME employers.

Keywords:
Propensity Score, Propensity Matching, Bias Reduction