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A selection correction method for heterogeneous treatment effects in staggered adoption settings

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  • Park, Minchul

Abstract

This paper proposes an application of Heckman’s (1979) selection correction approach to estimate heterogeneous treatment effects in staggered adoption settings. With a selection model for treatment timing, selection correction terms in counterfactual trends are derived, and the identified counterfactual trends are plugged into the difference-in-differences parameters. This approach allows never-treated potential outcomes to be generated by an interactive fixed effects model, which permits non-parallel trends of the never-treated outcomes. Unlike most methods based on interactive fixed effects models, the proposed method does not require a large number of pre-treatment periods. The empirical relevance of the proposed method is illustrated by estimating the short-term effects of first childbirth timing on women’s labor market outcomes.

Suggested Citation

  • Park, Minchul, 2025. "A selection correction method for heterogeneous treatment effects in staggered adoption settings," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525003271
    DOI: 10.1016/j.econlet.2025.112490
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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