Relaxing the exclusion restriction in shift-share instrumental variable estimation
Relaxing the exclusion restriction in shift-share instrumental variable estimation
Many economic studies use shift-share instruments to estimate causal effects. Often, all shares need to fulfill an exclusion restriction, making the identifying assumption strict. This paper proposes to use methods that relax the exclusion restriction by selecting valid shares. I apply the methods to estimate the effect of immigration on wages. The coefficient becomes much lower and often changes sign, which is in line with arguments made in the literature.
Apfel, Nicolas
53d7e18d-dc96-4772-abab-6f02aeafbbde
Apfel, Nicolas
53d7e18d-dc96-4772-abab-6f02aeafbbde
Apfel, Nicolas
(2023)
Relaxing the exclusion restriction in shift-share instrumental variable estimation.
Journal of the Royal Statistical Society: Series A (Statistics in Society), [1].
(In Press)
Abstract
Many economic studies use shift-share instruments to estimate causal effects. Often, all shares need to fulfill an exclusion restriction, making the identifying assumption strict. This paper proposes to use methods that relax the exclusion restriction by selecting valid shares. I apply the methods to estimate the effect of immigration on wages. The coefficient becomes much lower and often changes sign, which is in line with arguments made in the literature.
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Apfel2023Relaxing-PURE
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Accepted/In Press date: 20 December 2023
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Local EPrints ID: 486035
URI: http://eprints.soton.ac.uk/id/eprint/486035
ISSN: 0964-1998
PURE UUID: 8e6ff15a-b9f4-485e-aa05-3b449ce1a65b
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Date deposited: 08 Jan 2024 17:30
Last modified: 20 Dec 2024 05:01
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Author:
Nicolas Apfel
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