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Relaxing the Exclusion Restriction in Shift-Share Instrumental Variable Estimation

Nicolas Apfel

arXiv 29 Jun 2019 · Econometrics · publishedJournal of the Royal Statistical Society Series A (Statistics in Society) (2024) · 7 citations (OpenAlex)

arXiv:1907.00222 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Many economic studies use shift-share instruments to estimate causal effects. Often, all shares need to fulfil an exclusion restriction, making the identifying assumption strict. This paper proposes to use methods that relax the exclusion restriction by selecting invalid shares. I apply the methods in two empirical examples: the effect of immigration on wages and of Chinese import exposure on employment. In the first application, the coefficient becomes lower and often changes sign, but this is reconcilable with arguments made in the literature. In the second application, the findings are mostly robust to the use of the new methods.

Citation extraction

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appendix boundary found by appendix_command · 53% 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
1Borusyak, K., P. Hull, and X. Jaravel (2020) Quasi-Experimental Shift-Share Research Designs1.000114100%
2Autor, D. H., D. Dorn, and G. H. Hanson (2013) The China Syndrome: Local Labor Market Effects of Import Competition in the United States0.9285380%
3Adão, R., M. Kolesár, and E. Morales (2019) Shift-Share Designs: Theory and Inference0.92843100%
4Goldsmith-Pinkham, P., I. Sorkin, and H. Swift (2020) Bartik Instruments: What, When, Why, and How0.9098475%
5Jaeger, D. A., J. Ruist, and J. Stuhler (2020) Shift-Share Instruments and the Impact of Immigration0.87482100%
6Windmeijer, F., X. Liang, F. P. Hartwig, and J. Bowden (2020) The Confidence Interval Method for Selecting Valid Instrumental Variables0.7946350%
7Windmeijer, F., H. Farbmacher, N. Davies, and G. D. Smith (2019) On the Use of the Lasso for Instrumental Variables Estimation with Some Invalid Instruments0.7375340%
8Basso, G. and G. Peri (2015) The Association Between Immigration and Labor Market Outcomes in the United States0.6444250%
9Card, D (2009) Immigration and Inequality0.64422100%
10Tabellini, M (2020) Gifts of the Immigrants, Woes of the Natives: Lessons From the Age of Mass Migration0.64422100%

Showing the top 10 of 59 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
1Selecting Valid Instrumental Variables in Linear Models with Multiple Exposure Variables: Adaptive Lasso and the Median-of-Medians Estimator0.40511