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Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling

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Author Info
James J. Heckman
Justin L. Tobias
Edward Vytlacil

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Abstract

This paper derives simply computed closed-form expressions for the Average Treatment Effect (ATE), the effect of Treatment on the Treated (TT), Local Average Treatment Effect (LATE) and Marginal Treatment Effect (MTE) in a latent variable framework for both normal and non-normal models. The techniques presented in the paper are applied to estimating a variety of treatment parameters capturing the returns to a college education for various populations using data from the National Longitudinal Survey of Youth (NLSY).

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7950.

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Date of creation: Oct 2000
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Handle: RePEc:nbr:nberwo:7950

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Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models

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  1. John Cawley & Karen Conneely & James Heckman & Edward Vytlacil, 1996. "Cognitive Ability, Wages, and Meritocracy," NBER Working Papers 5645, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. James J. Heckman & Edward J. Vytlacil, 2000. "Local Instrumental Variables," NBER Technical Working Papers 0252, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Adolfo Sachsida & Mario Jorge C. de Mendonça & Fabio Stallivieri, 2007. "Ex-Convicts Face Multiple Labor Market Punishments: Estimates of Peer-Group and Stigma Effects Using Equations of Returns to Schooling," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 8(3), pages .503–52. [Downloadable!]
  3. Aakvik, Arild & Salvanes, Kjell G. & Vaage, Kjell, 2003. "Measuring Heterogeneity in the Returns to Education in Norway Using Educational Reforms," IZA Discussion Papers 815, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Alejandra Cattaneo & Rainer Winkelmann, 2003. "Earning Differentials between German and French Speakers in Switzerland," Working Papers 0309, University of Zurich, Socioeconomic Institute, revised Nov 2003. [Downloadable!]
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  5. Ruth Miquel, 2002. "Identification of Dynamic Treatment Effects by Instrumental Variables," University of St. Gallen Department of Economics working paper series 2002 2002-11, Department of Economics, University of St. Gallen. [Downloadable!]
  6. Alejandra Mizala & Pilar Romaguera, 2002. "Equity and Educational Performance," Documentos de Trabajo 136, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  7. Víctor Elías & Fernanda Ruiz Núñez & Ricardo Cossa & David Bravo, 2004. "An Econometric Cost-Benefit Analysis of Argentina's Youth Training Program," RES Working Papers 3174, Inter-American Development Bank, Research Department. [Downloadable!]
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  9. Michael B. Coelli & David A. Green & William P. Warburton, 2004. "Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients," IFS Working Papers W04/14, Institute for Fiscal Studies. [Downloadable!]
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  10. Calderón-Madrid, Angel & Trejo, Belem, 2002. "The Impact of the Mexican Training Program for Unemployed Workers on Re-employment Dynamics and on Earnings," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-1, International Conferences on Panel Data. [Downloadable!]
  11. Michael Gerfin & Robert E. Leu & Reto Nyffeler, 2003. "Berufliche Weiterbildung in der Schweiz," Diskussionsschriften dp0318, Universitaet Bern, Departement Volkswirtschaft. [Downloadable!]
  12. Flore Gubert & François Roubaud, 2005. "Analyser l’impact d’un projet de Micro-finance : l’exemple d’ADéFI à Madagascar," Working Papers DT/2005/14, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  13. Fajnzylber, Pablo & Maloney, William F. & Rojas, Gabriel V. Montes, 2006. "Releasing constraints to growth or pushing on a string ? the impact of credit, training, business associations, and taxes on the performance of Mexican micro-firms," Policy Research Working Paper Series 3807, The World Bank. [Downloadable!]
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