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The Review of Economics and Statistics Vol. 96 No. 5 2014

Evidence of Treatment Spillovers Within Markets

Marc Ferracci1,2,3,4,5,6; Grégory Jolivet7; Gerard J. van den Berg

1 Institut d'Etudes Politiques de Paris · 2 Centre for Research in Engineering Surface Technology · 3 Centre de Recherche en Économie et Statistique · 4 Center for Responsible Travel · 5 ENSAE Paris · 6 Nantes Université · 7 University of Bristol

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.

DOI
10.1162/rest_a_00428
Volume
96
Issue
5
Pages
812-823
Language
en
Sources
openalex crossref

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