Economics at your fingertips  

Quasi-Experimental Shift-Share Research Designs

Kirill Borusyak (), Peter Hull () and Xavier Jaravel

Papers from

Abstract: Many empirical studies leverage shift-share (or "Bartik") instruments that average a set of observed shocks with shock exposure weights. We derive a necessary and sufficient shock-level orthogonality condition for these instruments to identify causal effects. We then show that orthogonality holds when observed shocks are as-good-as-randomly assigned and growing in number, with the average shock exposure sufficiently dispersed. Quasi-experimental shift-share designs may be implemented with new shock-level procedures, which help visualize the identifying variation, correct standard errors, choose appropriate specifications, test identifying assumptions, and optimally combine multiple sets of quasi-random shocks. We illustrate these ideas by revisiting Autor et al. (2013)'s analysis of the labor market effects of Chinese import competition

Date: 2018-06, Revised 2018-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link) Latest version (application/pdf)

Related works:
Working Paper: Quasi-Experimental Shift-Share Research Designs (2018) Downloads
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:

Access Statistics for this paper

More papers in Papers from
Bibliographic data for series maintained by arXiv administrators ().

Page updated 2019-10-13
Handle: RePEc:arx:papers:1806.01221