Training Effects on Employment when the Training Effects are Heterogenous : an Application to Norwegian Vocational Rehabilitation Programs

Abstract

We formulate a econometric framework for studying treatment effects on discrete outcomes when the treatment effects are heterogeneous and the unobserved heterogeneity is given by a factor structure. Within this framework, we show how to define and semiparametrically estimate the average treatment effect, average treatment on the treated, and local average treatment effect on disrete outcomes.