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Difference in difference for nonbinary treatments in Stata

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  • Jeffrey Wooldridge

    (Michigan State University)

Abstract

I will show how an extended two-way fixed-effects estimator can be applied when an intervention variable has more than two levels. The intervention measure may have quantitative meaning—say, a continuous treatment—or it may be discrete and take on more than two levels. Estimation and inference, and aggregating effects across a treatment cohort, can be done using standard regression commands in Stata. The regression framework allows testing for pretrends and modeling heterogeneous trends. An application to the effects of Walmart openings at the county level to retail employment will be used for illustration.

Suggested Citation

  • Jeffrey Wooldridge, 2025. "Difference in difference for nonbinary treatments in Stata," 2025 Stata Conference 14, Stata Users Group.
    • Handle: RePEc:boc:usug25:14
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    File URL: http://repec.org/usug2025/US25_Wooldridge.pdf
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