Quasi-Experimental Shift-Share Research Designs
Sampling-based vs. Design-based Uncertainty in Regression Analysis
Kirill Borusyak (),
Peter Hull () and
Xavier Jaravel
Review of Economic Studies, 2022, vol. 89, issue 1, 181-213
Abstract:
Many studies use shift-share (or “Bartik”) instruments, which average a set of shocks with exposure share weights. We provide a new econometric framework for shift-share instrumental variable (SSIV) regressions in which identification follows from the quasi-random assignment of shocks, while exposure shares are allowed to be endogenous. The framework is motivated by an equivalence result: the orthogonality between a shift-share instrument and an unobserved residual can be represented as the orthogonality between the underlying shocks and a shock-level unobservable. SSIV regression coefficients can similarly be obtained from an equivalent shock-level regression, motivating shock-level conditions for their consistency. We discuss and illustrate several practical insights of this framework in the setting of Autor et al. (2013), estimating the effect of Chinese import competition on manufacturing employment across U.S. commuting zones.
Keywords: Shift-share instruments; Bartik instruments; Quasi-experiments; Instrumental variables; C18; C21; C26; F16; J21 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed
Downloads: (external link)
http://hdl.handle.net/10.1093/restud/rdab030 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Quasi-Experimental Shift-Share Research Designs (2020) 
Working Paper: Quasi-Experimental Shift-Share Research Designs (2020) 
Working Paper: Quasi-Experimental Shift-Share Research Designs (2018) 
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:oup:restud:v:89:y:2022:i:1:p:181-213.
Access Statistics for this article
Review of Economic Studies is currently edited by Thomas Chaney, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Kurt Mitman, Francesca Molinari, Katrine Loken and Elias Papaioannou
More articles in Review of Economic Studies from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().