Measuring and Correcting Monotonicity Bias: The Case of School Entrance Age Effects

Itay Attar (), Danny Cohen-Zada () and Todd Elder
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Itay Attar: Ben Gurion University
Danny Cohen-Zada: Ben Gurion University

No 17088, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Instrumental variables estimators typically must satisfy monotonicity conditions to be interpretable as capturing local average treatment effects. Building on previous research that suggests monotonicity is unlikely to hold in the context of school entrance age effects, we develop an approach for identifying the magnitude of the resulting bias. We also assess the impact on monotonicity bias of bandwidth selection in regression discontinuity (RD) designs, finding that "full sample" instrumental variables estimators may outperform RD in many cases. We argue that our approaches are applicable more broadly to numerous settings in which monotonicity is likely to fail.

Keywords: monotonicity; selection; entrance age; regression discontinuity; instrumental variable (search for similar items in EconPapers)
JEL-codes: C1 C21 C26 I2 I28 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2024-06
New Economics Papers: this item is included in nep-ecm and nep-ure
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Working Paper: Measuring and Correcting Monotonicity Bias:The Case of School Entrance Age Effects (2024)
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