Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling
James J. Heckman, Justin L. Tobias, Edward Vytlacil
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).
Published: Heckman, James J., Justin L. Tobias, and Edward Vytlacil. "Simple Estimators for Treatment Parameters within a Latent Variable Framework." Review of Economics and Statistics 85, 3 (2003).