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Evidence of Treatment Spillovers Within Markets

Author

Listed:
  • Marc Ferracci

    (University of Nantes, CREST-ENSAE, and Sciences Po)

  • Gr�gory Jolivet

    (University of Bristol)

  • Gerard J. van den Berg

    (University of Mannheim, IFAU Uppsala, VU University Amsterdam, and IZA)

Abstract

This paper provides a method to infer the presence of treatment spillovers within markets where a fraction of agents is treated. We model individual outcomes as functions of the assigned treatment status and the distribution of assigned treatments in a market. We develop a two-step identification and estimation method, focusing first on the treatment distribution among individuals within markets and then on the treatment distribution across markets. We apply our approach to training programs for unemployed individuals in France using rich administrative data. Our results provide evidence of interactions within local labor markets as potential individual outcomes vary with the proportion of treated individuals.

Suggested Citation

  • Marc Ferracci & Gr�gory Jolivet & Gerard J. van den Berg, 2014. "Evidence of Treatment Spillovers Within Markets," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 812-823, December.
    • Handle: RePEc:tpr:restat:v:96:y:2014:i:5:p:812-823
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    Citations

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    Cited by:

    1. Elias Einiö & Henry G. Overman, 2016. "The (Displacement) Effects of Spatially Targeted Enterprise Initiatives: Evidence from UK LEGI," SERC Discussion Papers 0191, Centre for Economic Performance, LSE.
    2. Bergemann, Annette & Pohlan, Laura & Uhlendorff, Arne, 2017. "The impact of participation in job creation schemes in turbulent times," Labour Economics, Elsevier, vol. 47(C), pages 182-201.
    3. Andrea Albanese & Bart Cockx & Muriel Dejemeppe, 2022. "Long-Term Effects of Hiring Subsidies for Unemployed Youths—Beware of Spillovers," CESifo Working Paper Series 9972, CESifo.
    4. Goulas, Eleftherios & Zervoyianni, Athina, 2018. "Active labour-market policies and output growth: Is there a causal relationship?," Economic Modelling, Elsevier, vol. 73(C), pages 1-14.
    5. Ioana Marinescu & Roland Rathelot, 2018. "Mismatch Unemployment and the Geography of Job Search," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 42-70, July.
    6. Mathieu Bunel & Elisabeth Tovar, 2015. "Spatial Mismatch through Local Public Employment Agencies? Answers from a French Quasi-Experiment," EconomiX Working Papers 2015-32, University of Paris Nanterre, EconomiX.
    7. Hoshino, Tadao & Yanagi, Takahide, 2023. "Treatment effect models with strategic interaction in treatment decisions," Journal of Econometrics, Elsevier, vol. 236(2).
    8. Ziaei, Sayyed Mahdi, 2022. "The impacts of household social benefits, public expenditure on labour markets, and household financial assets on the renewable energy sector," Renewable Energy, Elsevier, vol. 181(C), pages 51-58.
    9. Sourafel Girma & Yundan Gong & Holger Görg & Sandra Lancheros, 2016. "Estimating direct and indirect effects of foreign direct investment on firm productivity in the presence of interactions between firms," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 12, pages 227-239, World Scientific Publishing Co. Pte. Ltd..
    10. Nimczik, Jan Sebastian, 2017. "Job Mobility Networks and Endogenous Labor Markets," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168147, Verein für Socialpolitik / German Economic Association.
    11. John A. List & Fatemeh Momeni & Yves Zenou, 2020. "The Social Side of Early Human Capital Formation: Using a Field Experiment to Estimate the Causal Impact of Neighborhoods," Working Papers 2020-187, Becker Friedman Institute for Research In Economics.
    12. Mate Kormos & Robert P. Lieli & Martin Huber, 2023. "Treatment Effect Analysis for Pairs with Endogenous Treatment Takeup," Papers 2301.04876, arXiv.org.
    13. Arni, Patrick & van den Berg, Gerard J. & Lalive, Rafael, 2015. "Treatment versus Regime Effects of Carrots and Sticks," IZA Discussion Papers 9457, Institute of Labor Economics (IZA).
    14. John A. List & Fatemeh Momeni & Yves Zenou, 2020. "The Social Side of Early Human Capital Formation: Using a Field Experiment to Estimate the Causal Impact of Neighborhoods," Working Papers 2020-187, Becker Friedman Institute for Research In Economics.
    15. Mathieu Bunel & Elisabeth Tovar, 2015. "Spatial mismatch through local public employment agencies Answers from a French quasi-experiment Spatial Mismatch through Local Public Employment Agencies? Answers from a French Quasi-Experiment," Working Papers hal-01292103, HAL.
    16. List, John A. & Momeni, Fatemeh & Zenou, Yves, 2019. "Are Estimates of Early Education Programs Too Pessimistic? Evidence from a Large-Scale Field Experiment that Causally Measures Neighbor Effects," Working Paper Series 1293, Research Institute of Industrial Economics.
    17. Lombardi, Stefano & Skans, Oskar Nordström & Vikström, Johan, 2018. "Targeted wage subsidies and firm performance," Labour Economics, Elsevier, vol. 53(C), pages 33-45.
    18. Zenou, Yves & List, John & Momeni, Fatemeh, 2019. "Are Estimates of Early Education Programs Too Pessimistic? Evidence from a Large-Scale Field Experiment that Causally Measures," CEPR Discussion Papers 13725, C.E.P.R. Discussion Papers.
    19. Gonzalo Vazquez-Bare, 2017. "Identification and Estimation of Spillover Effects in Randomized Experiments," Papers 1711.02745, arXiv.org, revised Jan 2022.
    20. Bora Kim, 2020. "Analysis of Randomized Experiments with Network Interference and Noncompliance," Papers 2012.13710, arXiv.org.
    21. Ana Lara GÓMEZ, 2015. "Technological Spillovers of Research Infrastructures," Departmental Working Papers 2015-18, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    22. Laamanen, Jani-Petri, 2017. "Home-ownership and the Labour Market: Evidence from Rental Housing Market Deregulation," Labour Economics, Elsevier, vol. 48(C), pages 157-167.
    23. Cheung, Maria & Egebark, Johan & Forslund, Anders & Laun, Lisa & Rödin, Magnus & Vikström, Johan, 2019. "Does job search assistance reduce unemployment? Experimental evidence on displacement effects and mechanisms," Working Paper Series 2019:25, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    24. Karlsson, Maria & Lundin, Mathias, 2016. "On statistical methods for labor market evaluation under interference between units," Working Paper Series 2016:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    25. Hidano, Noboru & Hoshino, Tadao & Sugiura, Ayako, 2015. "The effect of seismic hazard risk information on property prices: Evidence from a spatial regression discontinuity design," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 113-122.

    More about this item

    Keywords

    spillovers; labor markets; local labor markets;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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