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Zhuan Pei

Publications and source records attributed to Zhuan Pei.

4 recordsLinked to original sources

Further Education During Unemployment

Evidence on the effectiveness of retraining U.S. unemployed workers primarily comes from evaluations of training programs, which represent one narrow avenue for skill acquisition. We use high-quality records from Ohio and a matching method to estimate the effects of retraining, broadly defined as enrollment in postsecondary institutions. Our simple method bridges two strands of the dynamic treatment effect literature that estimate the treatment-now-versus-later and treatment-versus-no-treatment effects. We find that enrollees experience earnings gains of six percent three to four years after enrolling, after depressed earnings during the first two years. The earnings effects are driven by industry-switchers, particularly to healthcare.

econ.GN

Supercompliers

In a binary-treatment instrumental variable framework, we define supercompliers as the subpopulation whose treatment take-up positively responds to eligibility and whose outcome positively responds to take-up. Supercompliers are the only subpopulation to benefit from treatment eligibility and, hence, are important for policy. We provide tools to characterize supercompliers under a set of jointly testable assumptions. Specifically, we require standard assumptions from the local average treatment effect literature plus an outcome monotonicity assumption. Estimation and inference can be conducted with instrumental variable regression. In two job-training experiments, we demonstrate our machinery's utility, particularly in incorporating social welfare weights into marginal-value-of-public-funds analysis.

econ.EM

Visual Inference and Graphical Representation in Regression Discontinuity Designs

Despite the widespread use of graphs in empirical research, little is known about readers' ability to process the statistical information they are meant to convey ("visual inference"). We study visual inference within the context of regression discontinuity (RD) designs by measuring how accurately readers identify discontinuities in graphs produced from data generating processes calibrated on 11 published papers from leading economics journals. First, we assess the effects of different graphical representation methods on visual inference using randomized experiments. We find that bin widths and fit lines have the largest impacts on whether participants correctly perceive the presence or absence of a discontinuity. Our experimental results allow us to make evidence-based recommendations to practitioners, and we suggest using small bins with no fit lines as a starting point to construct RD graphs. Second, we compare visual inference on graphs constructed using our preferred method with widely used econometric inference procedures. We find that visual inference achieves similar or lower type I error (false positive) rates and complements econometric inference.

econ.EM

The Devil is in the Tails: Regression Discontinuity Design with Measurement Error in the Assignment Variable

Identification in a regression discontinuity (RD) research design hinges on the discontinuity in the probability of treatment when a covariate (assignment variable) exceeds a known threshold. When the assignment variable is measured with error, however, the discontinuity in the relationship between the probability of treatment and the observed mismeasured assignment variable may disappear. Therefore, the presence of measurement error in the assignment variable poses a direct challenge to treatment effect identification. This paper provides sufficient conditions to identify the RD treatment effect using the mismeasured assignment variable, the treatment status and the outcome variable. We prove identification separately for discrete and continuous assignment variables and study the properties of various estimation procedures. We illustrate the proposed methods in an empirical application, where we estimate Medicaid takeup and its crowdout effect on private health insurance coverage.

stat.ME