UCL Department of Economics


CeMMAP Seminar - Kaspar Wutrich (UCSD)

14 November 2023, 12:30 pm–1:45 pm

Drayton House

Selection and parallel trends

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Andrei Zeleneev

Abstract: We study the role of selection into treatment in difference-in-differences (DiD) designs. We derive necessary and sufficient conditions for parallel trends assumptions under general classes of selection mechanisms. These conditions characterize the empirical content of parallel trends. For settings where the necessary conditions are questionable, we propose tools for selection-based sensitivity analysis. We also provide templates for justifying DiD in applications with and without covariates. A reanalysis of the causal effect of NSW training programs demonstrates the usefulness of our selection-based approach to sensitivity analysis.

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