Causal Mediation in Panel Data – Estimation Based on Difference in Differences

Anders Holm and Richard Breen

No kwscz, SocArXiv from Center for Open Science

Abstract: We propose a novel way of estimating direct and indirect causal effects for panel data. Our method applies when the treatment and the mediator can be coded as binary variables. We exploit pre-treatment and pre-mediator differences in outcomes between the mediated and non-mediated groups within the treated units. Our method is applicable when the mediator is realized both before and after treatment or when it is only a consequence of the treatment. We apply our method to the New Jersey minimum wage policy data and show that a minimal effect on overall employment is mediated through part-time employment.

Date: 2023-03-23
New Economics Papers: this item is included in nep-ecm
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:kwscz

DOI: 10.31219/osf.io/kwscz

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