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Difference-in-Differences and Changes-in-Changes with Sample Selection

Javier Viviens

arXiv 12 Feb 2025 · Econometrics

arXiv:2502.08614 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Sample selection arises endogenously in causal research when the treatment affects whether certain units are observed. It is a common pitfall in longitudinal studies, particularly in settings where treatment assignment is confounded. In this paper, I highlight the drawbacks of one of the most popular identification strategies in such settings: Difference-in-Differences (DiD). Specifically, I employ principal stratification analysis to show that the conventional ATT estimand may not be well defined, and the DiD estimand cannot be interpreted causally without additional assumptions. To address these issues, I develop an identification strategy to partially identify causal effects on the subset of units with well-defined and observed outcomes under both treatment regimes. I adapt Lee bounds to the Changes-in-Changes (CiC) setting (Athey & Imbens, 2006), leveraging the time dimension of the data to relax the unconfoundedness assumption in the original trimming strategy of Lee (2009). This setting has the DiD identification strategy as a particular case, which I also implement in the paper. Additionally, I explore how to leverage multiple sources of sample selection to relax the monotonicity assumption in Lee (2009), which may be of independent interest. Alongside the identification strategy, I present estimators and inference results. I illustrate the relevance of the proposed methodology by analyzing a job training program in Colombia.

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64
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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
1Attanasio, Orazio and Kugler, Adriana and Meghir, Costas Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial0.87452100%
2Lee, David S Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects0.8229556%
3Rathnayake, Gayani and Negi, Akanksha and Bartalotti, Otavio and Zha… Difference-in-Differences with Sample Selection0.81142100%
4Athey, Susan and Imbens, Guido W Identification and Inference in Nonlinear Difference-in-Differences Models0.75126542%
5Grilli, Leonardo and Mealli, Fabrizia Nonparametric Bounds on the Causal Effect of University Studies on Job Opportunities Using Principal Stratification0.7374350%
6Long, Dustin M. and Hudgens, Michael G Sharpening Bounds on Principal Effects with Covariates0.7374350%
7Shin, Sooahn Difference-in-differences Design with Outcomes Missing Not at Random0.73732100%
8Horowitz, Joel L. and Manski, Charles F Identification and Robustness with Contaminated and Corrupted Data0.7218338%
9Angrist, Joshua D. and Pischke, Jörn-Steffen Mostly Harmless Econometrics: An Empiricist's Companion0.64422100%
10Arkhangelsky, Dmitry and Imbens, Guido Causal models for longitudinal and panel data: a survey0.64422100%

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Difference-in-Differences with Sample Selection0.64441
2Efficient Difference-in-Differences Estimation when Outcomes are Missing at Random0.40511