Quasi-Experimental Shift-Share Research Designs

Kirill Borusyak, Peter Hull and Xavier Jaravel

No 24997, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: C18 C21 C26 F16 J21 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-lma
Note: ITI LS
References: Add references at CitEc
Citations: View citations in EconPapers (162)

Published as Kirill Borusyak & Peter Hull & Xavier Jaravel & Dirk Krueger, 2022. "Quasi-Experimental Shift-Share Research Designs," The Review of Economic Studies, vol 89(1), pages 181-213.

Downloads: (external link)
http://www.nber.org/papers/w24997.pdf (application/pdf)

Related works:
Journal Article: Quasi-Experimental Shift-Share Research Designs (2022)
Working Paper: Quasi-experimental shift-share research designs (2022)
Working Paper: Quasi-Experimental Shift-Share Research Designs (2020)
Working Paper: Quasi-Experimental Shift-Share Research Designs (2020)
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:nbr:nberwo:24997

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w24997

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().