A selection correction method for heterogeneous treatment effects in staggered adoption settings

Minchul Park

Economics Letters, 2025, vol. 254, issue C

Abstract: This paper proposes an application of Heckman’s (1979) selection correction approach to estimate heterogeneous treatment effects in staggered adoption settings. With a selection model for treatment timing, selection correction terms in counterfactual trends are derived, and the identified counterfactual trends are plugged into the difference-in-differences parameters. This approach allows never-treated potential outcomes to be generated by an interactive fixed effects model, which permits non-parallel trends of the never-treated outcomes. Unlike most methods based on interactive fixed effects models, the proposed method does not require a large number of pre-treatment periods. The empirical relevance of the proposed method is illustrated by estimating the short-term effects of first childbirth timing on women’s labor market outcomes.

Keywords: Program evaluation; Selection correction; Interactive fixed effects; Non-parallel trends; Short panel; Child penalty (search for similar items in EconPapers)
JEL-codes: C21 J13 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525003271

DOI: 10.1016/j.econlet.2025.112490

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