EconBase
← All papers

Quasi-Experimental Shift-Share Research Designs

Kirill Borusyak, Peter Hull, Xavier Jaravel

arXiv 4 Jun 2018 · Econometrics · publishedThe Review of Economic Studies (2018) · 135 citations (OpenAlex)

arXiv:1806.01221 · PDF · DOI · OpenAlex · Extracted main text

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.

Citation extraction

53
references
242
in-text mentions
53
distinct cited
3
self-citations
21,485
main-text words

appendix boundary found by appendix_command · 48% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Hummels, David, Jorgensen, Rasmus, Munch, Jakob, Xiang, Chong (2014) The Wage Effects of Offshoring: Evidence From Danish Matched Worker-Firm Data0.92843100%
2Bartik, Timothy J (1991) Who Benefits from State and Local Economic Development Policies?0.87418667%
3Autor, David H., Dorn, David, Hanson, Gordon H (2013) The China Syndrome: Local Labor Market Effects of Import Competition in the United States0.870441066%
4Acemoglu, Daron, Autor, David H., Dorn, David, Hanson, Gordon H., Pr… (2016) Import Competition and the Great U.S . Employment Sag of the 2000s0.86431565%
5Nunn, Nathan, Qian, Nancy (2014) US Food Aid and Civil Conflict0.81142100%
6Goldsmith-Pinkham, Paul, Sorkin, Isaac, Swift, Henry (2020) Bartik Instruments: What, When, Why, and How0.79428850%
7Jaeger, David A, Ruist, Joakim, Stuhler, Jan (2018) Shift-Share Instruments and Dynamic Adjustments: The Case of Immigration0.7375340%
8Peri, Giovanni, Shih, Kevin, Sparber, Chad (2016) STEM workers, H-1B Visas, and productivity in US cities0.73732100%
9Xu, Chenzi (2019) Reshaping Global Trade: The Immediate and Long-Run Effects of Bank Failures0.73732100%
10Morales, Eduardo (2019) Shift-Share Designs: Theory and Inference0.71139836%

Showing the top 10 of 53 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Overidentification in Shift-Share Designs1.000227
2Relaxing the Exclusion Restriction in Shift-Share Instrumental Variable Estimation1.000114
3SHIFT-SHARE DESIGNS: THEORY AND INFERENCE1.00084
4Nonlinear Treatment Effects in Shift-Share Designs1.00074
5On Policy Evaluation With Aggregate Time-Series Instruments1.00053
6Estimating Demand with Recentered Instruments1.00053
7ON THE USE OF DESIGN-BASED SIMULATIONS1.00053
8Endogenous Interference in Randomized Experiments0.84354
9Regression Discontinuity Aggregation, with an Application to the Union Effects on Inequality0.81142
10Shift-Share Designs in Political Science0.794205