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Bartik Instruments: What, When. Why, and How

delete2020-08-01
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OA
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G
Goldsmith-Pinkham, Paul *
I
Isaac Sorkin
H
Henry Swift
DOI:10.1257/aer.20181047delete
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Abstract

Abstract

En 中文
The Bartik instrument is formed by interacting local industry shares and national industry growth rates. We show that the typical use of a Bartik instrument assumes a pooled exposure research design, where the shares measure differential exposure to common shocks, and identification is based on exogeneity of the shares. Next, we show how the Bartik instrument weights each of the exposure designs. Finally, we discuss how to assess the plausibility of the research design. We illustrate our results through two applications: estimating the elasticity of labor supply, and estimating the elasticity of substitution between immigrants and natives.
Keywords:
VARIABLES
INFERENCE
OUTCOMES
IMPACT
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Key information extracted from the uploaded paper, including a brief overview, abstract, background, key highlights, visual analysis, and future outlook.

Journal

American Economic Review cover
American Economic Review
IF:
11.6
Papers:
5.0K
Citations:
7.5W

Organization

Y
Yale University
Scholars:
6.5W
Papers: 6.0W
Citations: 10.0W
S
Stanford University
Scholars:
9.6W
Papers: 8.2W
Citations: 17.0W
Cited Papers

Cited Papers

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SHIFT-SHARE DESIGNS: THEORY AND INFERENCE
err2019-08-20
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errOAAI
errAdao, Rodrigo; Kolesar, Michal; Morales, Eduardo
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