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Difference-in-Differences with Sample Selection

Gayani Rathnayake, Akanksha Negi, Otavio Bartalotti, Xueyan Zhao

arXiv 14 Nov 2024 · Econometrics

arXiv:2411.09221 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider identification of average treatment effects on the treated (ATT) within the difference-in-differences (DiD) framework in the presence of endogenous sample selection. First, we establish that the usual DiD estimand fails to recover meaningful treatment effects, even if selection and treatment assignment are independent. Next, we partially identify the ATT for individuals who are always observed post-treatment regardless of their treatment status, and derive bounds on this parameter under different sets of assumptions about the relationship between sample selection and treatment assignment. Extensions to the repeated cross-section and two-by-two comparisons in the staggered adoption case are explored. Furthermore, we provide identification results for the ATT of three additional empirically relevant latent groups by incorporating outcome mean dominance assumptions which have intuitive appeal in applications. Finally, two empirical illustrations demonstrate the approach's usefulness by revisiting (i) the effect of a job training program on earnings(Calonico & Smith, 2017) and (ii) the effect of a working-from-home policy on employee performance (Bloom, Liang, Roberts, & Ying, 2015).

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55
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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
1Bartalotti, O., D. Kédagni, and V. Possebom (2023) Identifying marginal treatment effects in the presence of sample selection self1.00073100%
2Chen, X. and C. A. Flores (2015) Bounds on treatment effects in the presence of sample selection and noncompliance: the wage effects of Job Corps1.00054100%
3Lee, D. S (2009) Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects0.88526869%
4Huber, M. and G. Mellace (2015) Sharp bounds on causal effects under sample selection0.85113562%
5Sant’Anna, P. H. and Q. Xu (2026) Difference-in-differences with compositional changes0.8434375%
6Semenova, V (2025) Generalized lee bounds0.84310360%
7Bloom, N., J. Liang, J. Roberts, and Z. J. Ying (2015) Does working from home work? Evidence from a Chinese experiment0.81142100%
8Shin, S (2024) Difference-in-differences Design with Outcomes Missing Not at Random0.81142100%
9Abadie, A (2005) Semiparametric difference-in-differences estimators0.7375440%
10Imai, K (2008) Sharp bounds on the causal effects in randomized experiments with “truncation-by-death”0.7373367%

Showing the top 10 of 55 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
1Estimating the Intensive Margin Effect in Panel Data Settings0.81142
2Difference-in-Differences with Compositional Changes0.40511
3Efficient Difference-in-Differences Estimation when Outcomes are Missing at Random0.40511