A Nonparametric Finite Mixture Approach to Difference-in-Difference Estimation, with an Application to On-the-job Training and Wages

Oliver Cassagneau-Francis, Robert Gary-Bobo (), Julie Pernaudet () and Jean-Marc Robin
Additional contact information
Julie Pernaudet: University of Chicago

Working Papers from HAL

Abstract: We develop a finite-mixture framework for nonparametric difference-indifference analysis with unobserved heterogeneity correlating treatment and outcome. Our framework includes an instrumental variable for the treatment, and we demonstrate that this allows us to relax the common-trend assumption. Outcomes can be modeled as first-order Markovian, provided at least 2 post-treatment observations of the outcome are available. We provide a nonparametric identification proof. We apply our framework to evaluate the effect of on-the-job training on wages, using novel French linked employee-employer data. Estimating our model using an EM-algorithm, we find small ATEs and ATTs on hourly wages, around 1%.

Keywords: Finite Mixtures; Unobserved Heterogeneity; EM Algorithm; Wage Distributions; Training; Matched Employer-Employee Data E24; E32; J63; J64 (search for similar items in EconPapers)
Date: 2022-10-10
New Economics Papers: this item is included in nep-ecm
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03869547v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sciencespo.hal.science/hal-03869547v1/document (application/pdf)

Related works:
Working Paper: A Nonparametric Finite Mixture Approach to Difference-in-Difference Estimation, with an Application to On-the-job Training and Wages (2022)
Working Paper: A Nonparametric Finite Mixture Approach to Difference-in-Difference Estimation, with an Application to On-the-job Training and Wages (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-03869547

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().