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Immigration

Rethinking identification under the Bartik Shift-Share Instrument

David McKenzie's picture
While it has been said that “friends don’t let friends use IV”, one exception has been the Bartik or shift-share instrument. Development economists tend to see these instruments used most in the trade and migration literatures, with Jaeger et al. (2018) noting that “it is difficult to overstate the importance of this instrument for research on immigration.

Weekly links May 26: the Chetty production function, collect priors before you work, small samples bring trouble, and more…

David McKenzie's picture

Conditional on your parents, does your country matter for early childhood human capital? Surprisingly no!

David McKenzie's picture
There is a large literature that emphasizes the importance of investments made in early life for lifetime outcomes. Does growing up in a poor, conflict-afflicted country have a negative impact? There are many reasons to think yes, including the disease environment, quality of medical facilities, availability of nutrition, quality of early-childhood education facilities etc.