Quantile treatment effects in difference in differences models with panel data

B-Tier
Journal: Quantitative Economics
Year: 2019
Volume: 10
Issue: 4
Pages: 1579-1618

Authors (2)

Brantly Callaway (not in RePEc) Tong Li (Vanderbilt University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:wly:quante:v:10:y:2019:i:4:p:1579-1618
Journal Field
General
Author Count
2
Added to Database
2026-01-25