EconBase
← All papers

Estimating Heterogeneous Effects: Applications to Labor Economics

Stephane Bonhomme, Angela Denis

arXiv 1 Apr 2024 · Econometrics · publishedLabour Economics (2024) · 13 citations (OpenAlex)

arXiv:2404.01495 · PDF · DOI · OpenAlex · Extracted main text

Abstract

A growing number of applications involve settings where, in order to infer heterogeneous effects, a researcher compares various units. Examples of research designs include children moving between different neighborhoods, workers moving between firms, patients migrating from one city to another, and banks offering loans to different firms. We present a unified framework for these settings, based on a linear model with normal random coefficients and normal errors. Using the model, we discuss how to recover the mean and dispersion of effects, other features of their distribution, and to construct predictors of the effects. We provide moment conditions on the model's parameters, and outline various estimation strategies. A main objective of the paper is to clarify some of the underlying assumptions by highlighting their economic content, and to discuss and inform some of the key practical choices.

Citation extraction

54
references
95
in-text mentions
54
distinct cited
1
self-citations
11,722
main-text words

appendix boundary found by none_found · 100% 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
1Chetty and Hendren (2018) The impacts of neighborhoods on intergenerational mobility II: County-level estimates1.00086100%
2Arellano and Bonhomme (2012) Identifying distributional characteristics in random coefficients panel data models1.00054100%
3Kline, Rose, and Walters (2022) Systemic discrimination among large US employers1.00054100%
4Jiang and Nguyen (2007) Linear and generalized linear mixed models and their applications0.92844100%
5Abowd, Kramarz, and Margolis (1999) High wage workers and high wage firms0.92843100%
6Andrews, Gill, Schank, and Upward (2008) High wage workers and low wage firms: negative assortative matching or limited mobility bias?0.92843100%
7Bonhomme, Lamadon, and Manresa (2019) A distributional framework for matched employer employee data0.84333100%
8Chetty and Hendren (2018) The impacts of neighborhoods on intergenerational mobility I: Childhood exposure effects0.84333100%
9Bonhomme, Holzheu, Lamadon, Manresa, Mogstad, and Setzler (2023) How much should we trust estimates of firm effects and worker sorting?0.73732100%
10Kline, Saggio, and Slvsten (2020) Leave-out estimation of variance components0.73732100%

Showing the top 10 of 54 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
1Debiased Machine Learning for Unobserved Heterogeneity: High-Dimensional Panels and Measurement Error Models0.73732
2Nonparametric Empirical Bayes Confidence Intervals0.64422
3A sliced Wasserstein and diffusion approach to random coefficient models0.40511
4Automatic Inference for Value-Added Regressions0.40511
52cm Optimal Estimation of Two-Way Effects under Limited Mobility0.40511
6Compound Selection Decisions: An Almost SURE Approach0.40511