Boundary Discontinuity Methods and Policy Spillovers

37 Pages Posted: 30 May 2022 Last revised: 4 Jun 2022

See all articles by Ekaterina jardim

Ekaterina jardim

Amazon.com

Mark C. Long

University of Washington - Daniel J. Evans School of Public Policy and Governance

Robert D. Plotnick

University of Washington - Daniel J. Evans School of Public Policy and Governance

Emma van Inwegen

Massachusetts Institute of Technology (MIT)

Jacob Vigdor

University of Washington

Hilary Wething

Pennsylvania State University

Date Written: May 2022

Abstract

The boundary discontinuity method of causal inference may yield misleading results if a policy’s impacts do not stop at the border of the implementing jurisdiction. We use geographically precise longitudinal employment data documenting worker job-to-job mobility to study policy spillovers in the context of three local minimum wage increases. Estimated spillover impacts on wages and hours are statistically significant, geographically diffuse, and sufficient to create concern regarding interpretation of results even using not-immediately-adjacent regions as controls. Spillover effects appear less concerning with smaller interventions or those or adopted in a smaller jurisdiction.

Suggested Citation

jardim, Ekaterina and Long, Mark C. and Plotnick, Robert D. and van Inwegen, Emma and Vigdor, Jacob and Wething, Hilary, Boundary Discontinuity Methods and Policy Spillovers (May 2022). NBER Working Paper No. w30075, Available at SSRN: https://ssrn.com/abstract=4122804

Ekaterina Jardim (Contact Author)

Amazon.com ( email )

Seattle, WA 98144
United States

Mark C. Long

University of Washington - Daniel J. Evans School of Public Policy and Governance ( email )

Seattle, WA 98125
United States

Robert D. Plotnick

University of Washington - Daniel J. Evans School of Public Policy and Governance ( email )

Seattle, WA 98125
United States

Emma Van Inwegen

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Jacob Vigdor

University of Washington ( email )

Hilary Wething

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
14
Abstract Views
357
PlumX Metrics