“Evaluating the employment impact of a mandatory job search program”
What treatment do the authors evaluate?
Answer: In the parametric methods, the common trend assumption is:
$$\begin{array}{l}
f^{-1}\left[E\left(Y_{i t}^{0} | X, N D=1, t=1\right)\right]-f^{-1}\left[E\left(Y_{i t}^{0} | X, N D=1, t=0\right)\right] \
=f^{-1}\left[E\left(Y_{i t}^{0} | X, N D=0, t=1\right)\right]-f^{-1}\left[E\left(Y_{i t}^{0} | X, N D=0, t=0\right)\right]
\end{array}$$
In the non-parametric methods, the common trend assumption is:
$$\begin{array}{l}
E\left(Y_{i t}^{0} | P_{E X}, P_{t X}, N D=1, t=1\right)-E\left(Y_{i t}^{0} | P_{E X}, P_{t X}, N D=1, t=0\right) \
=E\left(Y_{i t}^{0} | P_{E X}, P_{t X}, N D=0, t=1\right)-E\left(Y_{i t}^{0} | P_{E X}, P_{t X}, N D=0, t=0\right)
\end{array}$$
