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Job Displacement during the Great Recession: Tight Bounds on Distributional Treatment Effect Parameters using Panel Data

Brantly Callaway ()

No 1703, DETU Working Papers from Department of Economics, Temple University

Abstract: Late prime-age workers who were displaced during the Great Recession lost on average 39% of their earnings relative to their counterfactual earnings had they not been displaced. But the average effect masks substantial heterogeneity across workers. This paper develops new techniques to bound distributional treatment effect parameters that depend on the joint distribution of potential outcomes -- an object not identified by standard identifying assumptions such as selection on observables or even when treatment is randomly assigned. I show that panel data and an additional assumption on the dependence between untreated potential outcomes for the treated group over time (i) provide more identifying power for distributional treatment effect parameters than existing bounds and (ii) provide a more plausible set of conditions than existing methods that obtain point identification.

Keywords: Joint Distribution of Potential Outcomes; Distribution of the Treatment Effect; Quantile of the Treatment Effect; Copula Stability Assumption; Panel Data; Job Displacement (search for similar items in EconPapers)
JEL-codes: C14 C31 C33 J63 (search for similar items in EconPapers)
Date: 2017-08
New Economics Papers: this item is included in nep-ecm and nep-mac
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