Cited by 1,427Advanced Causal Inference TechniquesSpatial and Panel Data AnalysisRegional Economic and Spatial Analysis

Quasi-Experimental Shift-Share Research Designs

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Borusyak, Kirill, Hull, Peter, Jaravel, Xavier·2022·The Review of Economic Studies

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.

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Authors
Borusyak, K., Hull, P., & Jaravel, X.
Affiliations
  • University College London and CEPR
  • National Bureau of Economic Research (US)
  • Centre for Economic Policy Research (GB)
Corresponding author
Jaravel, Xavier
Venue
The Review of Economic Studies
Published
2021-06-08
Volume
89
Issue
1
Pages
181-213
ISSN
  • 0034-6527 (ISSN-L)
  • 1467-937X
OpenAlex
W2807611776
Cited by
1,427
References
43
Citations by year
2026: 376 · 2025: 271 · 2024: 233 · 2023: 198 · 2022: 125 · 2021: 101 · 2020: 59 · 2019: 35 · 2018: 20 · 2017: 3 · 2016: 3 · 2015: 2
FWCI
44.61
Type
journal article
Language
en
Open access
Locations
  • The Review of Economic Studies (publishedVersion)
  • National Bureau of Economic Research (publishedVersion)
  • PubMed (publishedVersion)
  • PubMed Central (acceptedVersion)
  • London School of Economics and Political Science Research Online (London School of Economics and Political Science) (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • arXiv (Cornell University) (submittedVersion)
  • London School of Economics and Political Science Theses Online (London School of Economics and Political Science) (submittedVersion)
  • arXiv (Cornell University)
Funders
  • Economic and Social Research Council (ES/T014431/1, ES/V009478/1)
  • Eunice Kennedy Shriver National Institute of Child Health and Human Development (P2CHD041020)
Topics
  • Physical Sciences › Mathematics › Statistics and Probability › Advanced Causal Inference Techniques
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Regional Economic and Spatial Analysis
Keywords
shift-share instrument, Bartik instrument, Chinese import competition, manufacturing employment

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