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Quantitative Economics
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Quantitative Economics
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Quantile treatment effects in difference in differences models with panel data

Authors: Callaway, Brantly; Li, Tong;

Quantile treatment effects in difference in differences models with panel data

Abstract

This paper considers identification and estimation of the Quantile Treatment Effect on the Treated (QTT) under a straightforward distributional extension of the most commonly invoked Mean Difference in Differences Assumption used for identifying the Average Treatment Effect on the Treated (ATT). Identification of the QTT is more complicated than the ATT though because it depends on the unknown dependence (or copula) between the change in untreated potential outcomes and the initial level of untreated potential outcomes for the treated group. To address this issue, we introduce a new Copula Stability Assumption that says that the missing dependence is constant over time. Under this assumption and when panel data is available, the missing dependence can be recovered, and the QTT is identified. We use our method to estimate the effect of increasing the minimum wage on quantiles of local labor markets' unemployment rates and find significant heterogeneity.

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Keywords

Difference in Differences, difference in differences, ddc:330, Causal inference from observational studies, panel data, quantile treatment effect on the treated, propensity score reweighting, Quantile Treatment Effect on the Treated, copula, C14, Nonparametric regression and quantile regression, C20, Characterization and structure theory for multivariate probability distributions; copulas, Applications of statistics to economics, C23

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
73
Top 1%
Top 10%
Top 10%
gold