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http://ssrn.com/abstract=432501
 
 

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Treatment Effect Heterogeneity in Theory and Practice


Joshua D. Angrist


Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

August 2003

MIT Department of Economics Working Paper No. 03-27; IZA Discussion Paper No. 851

Abstract:     
Instrumental Variables (IV) methods identify internally valid causal effects for individuals whose treatment status is manipulable by the instrument at hand. Inference for other populations requires homogeneity assumptions. This paper outlines a theoretical framework that nests causal homogeneity assumptions. These ideas are illustrated using sibling-sex composition to estimate the effect of child-bearing on economic and marital outcomes. The application is motivated by American welfare reform. The empirical results generally support the notion of reduced labor supply and increased poverty as a consequence of childbearing, but evidence on the impact of childbearing on marital stability and welfare use is more tenuous.

Number of Pages in PDF File: 46

Keywords: Instrumental Variables, Marital Stability, Welfare, Causal Effects

JEL Classification: C31, J12, J13

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Date posted: August 8, 2003  

Suggested Citation

Angrist, Joshua D., Treatment Effect Heterogeneity in Theory and Practice (August 2003). MIT Department of Economics Working Paper No. 03-27; IZA Discussion Paper No. 851. Available at SSRN: http://ssrn.com/abstract=432501 or http://dx.doi.org/10.2139/ssrn.432501

Contact Information

Joshua Angrist (Contact Author)
Massachusetts Institute of Technology (MIT) - Department of Economics ( email )
50 Memorial Drive
E52-353
Cambridge, MA 02142
United States
617-253-8909 (Phone)
617-253-1330 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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