Can Variation in Subgroups' Average Treatment Effects Explain Treatment Effect Heterogeneity? Evidence from a Social Experiment
评估福利改革是否仅通过子群体内恒定但子群体间变化的平均效应影响收入,发现忽略子群体内异质性会遗漏与劳动供给理论一致的处理效应证据。
We assess whether welfare reform affects earnings only through mean impacts that are constant within but vary across subgroups. This is important because researchers interested in treatment effect heterogeneity typically focus on estimating mean impacts that only vary across subgroups. Using a novel approach to simulating treatment group earnings under the constant mean impacts within subgroup model, we find this model does a poor job of capturing treatment effect heterogeneity for Connecticut's Jobs First welfare reform experiment. Notably, ignoring within-group heterogeneitywould lead one to miss evidence that treatment effects are consistent with basic labor supply theory.