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A practical guide to shift-share instruments

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  • Borusyak, Kirill
  • Hull, Peter
  • Jaravel, Xavier

Abstract

A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate key points.

Suggested Citation

  • Borusyak, Kirill & Hull, Peter & Jaravel, Xavier, 2025. "A practical guide to shift-share instruments," LSE Research Online Documents on Economics 127403, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127403
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    File URL: http://eprints.lse.ac.uk/127403/
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    Cited by:

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    2. Joaquín Blaum & Federico Esposito & Sebastian Heise, 2025. "Input Sourcing Under Supply Chain Risk: Evidence from U.S. Manufacturing Firms," Staff Reports 1141, Federal Reserve Bank of New York.

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    More about this item

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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