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

36 Pages Posted: 12 Oct 2000 Last revised: 19 Oct 2010

See all articles by James J. Heckman

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Justin L. Tobias

University of California, Irvine - Department of Economics

Edward Vytlacil

Yale University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: October 2000

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).

Suggested Citation

Heckman, James J. and Tobias, Justin L. and Vytlacil, Edward J., Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling (October 2000). NBER Working Paper No. w7950. Available at SSRN: https://ssrn.com/abstract=245731

James J. Heckman (Contact Author)

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Justin L. Tobias

University of California, Irvine - Department of Economics

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Edward J. Vytlacil

Yale University - Department of Economics ( email )

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