A Practical Guide to Shift-Share Instruments

Kirill Borusyak, Peter Hull and Xavier Jaravel

No 33236, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate key points.

JEL-codes: C18 C21 C26 F16 J21 J61 (search for similar items in EconPapers)
Date: 2024-12
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Published as Kirill Borusyak & Peter Hull & Xavier Jaravel, 2025. "A Practical Guide to Shift-Share Instruments," Journal of Economic Perspectives, vol 39(1), pages 181-204.

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Related works:
Journal Article: A Practical Guide to Shift-Share Instruments (2025)
Working Paper: A practical guide to shift-share instruments (2025)
Working Paper: A practical guide to shift-share instruments (2024)
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