Martins, Pedro S. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
relies on a
rich set of observable individual characteristics, X, so that the distribution of the individual
characteristics … for the DDM
estimator is now
E[Y 0it − Y 0itprime | p,D = 1] = E[Y 0it − Y 0itprime | p,D = 0], (4)
where p = Pr(D = 1|X … a conditional mean independence
assumption,
E bracketleftbigY 0it|X,D = 1bracketrightbig = E bracketleftbigY 0it|X,D = 0 …