Quasi-Experimental Shift-Share Research Designs / Kirill Borusyak, Peter Hull, Xavier Jaravel.

Format:

Book

Author/Creator:

Borusyak, Kirill.

Contributor:

National Bureau of Economic Research.

Hull, Peter.

Jaravel, Xavier.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24997.

NBER working paper series no. w24997

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

Many studies use shift-share (or "Bartik") instruments, which average a set of shocks with exposure share weights. We provide a new econometric framework for shift-share instrumental variable (SSIV) regressions in which identification follows from the quasi-random assignment of shocks, while exposure shares are allowed to be endogenous. The framework is motivated by an equivalence result: the orthogonality between a shift-share instrument and an unobserved residual can be represented as the orthogonality between the underlying shocks and a shock-level unobservable. SSIV regression coefficients can similarly be obtained from an equivalent shock-level regression, motivating shock-level conditions for their consistency. We discuss and illustrate several practical insights of this framework in the setting of Autor et al. (2013), estimating the effect of Chinese import competition on manufacturing employment across U.S. commuting zones.

Notes:

Print version record

September 2018.