Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305706 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17264
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We provide a simple distribution regression estimator for treatment effects in the difference-in-differences (DiD) design. Our procedure is particularly useful when the treatment effect differs across the distribution of the outcome variable. Our proposed estimator easily incorporates covariates and, importantly, can be extended to settings where the treatment potentially affects the joint distribution of multiple outcomes. Our key identifying restriction is that the counterfactual distribution of the treated in the untreated state has no interaction effect between treatment and time. This assumption results in a parallel trend assumption on a transformation of the distribution. We highlight the relationship between our procedure and assumptions with the changes-in-changes approach of Athey and Imbens (2006). We also reexamine two existing empirical examples which highlight the utility of our approach.
Subjects: 
difference-in-differences
treatment effects
distribution regression
JEL: 
C10
C21
Document Type: 
Working Paper

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