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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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    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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