Hi,

I am using traditional NSW(National Supported Work Demonstration) dataset to do couple of matching estimations. I am trying to get the ATE of the work training in various approaches.The dependent variable is “re78(income in 1978)", the treatment variable is “treatment” where “treatment=1” represents group who get the training, the control variables are black, hispanic, married. One of the approach is to use OLS directly to get the ATE (I know this approach would have a bad estimation result but I still want to get an idea of this approach).

Here is my thought of doing it:

reg re78 black hispanic married
predict unre78, xb
The unre78 represents the estimated unobservable treatment effect. For example, as for group of "treatment=1”, the unre78 contains rough data of assumed income in 1978 if these people do not get the work training. Then I could get the individual treatment effect, and a rough ATT by “re78-unre78” if treatment=1. But for the control group, I do not think unre78 contains data of assumed income in 1978 if these people actually get the work training. Thus I consider myself thinking in a wrong way.

So could someone please helping me with this ATE estimation question? I also intend to figure out how to get the Individual Treatment Effect (since I do not think doing a “re78-unre78” would generate the ITE)?