Question: Now assume that a randomized control trial is run. Three groups are randomly formed in thepopulation. The first group ( Z = 0 ) faces

Now assume that a randomized control trial is run. Three groups are randomly formed in thepopulation. The first group (Z =0) faces the normal rules (cost c). The second group (Z =1) cannot access the training at all. The third group (Z =2) is offered a subsidy s < c if theychoose to attend the training 1.Compute the value of the average wage in each of these populations. 2. Note that you can identify the proportion of trainees in each randomly formed group. Giventhis, show that by comparing group Z =1 with group Z =0 you can build an estimandidentifying the same parameter as in the absence of an experiment. Hint: this estimand may or may not be a simple difference in mean.

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