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Here the compliers are those individuals whose behavior coincides with the predictions used as the instrumental variable.
Thus, by employing the status of a performance-based payment system, based on the firm's past decision and assured to be exogenous, as the instrumental variable (IV) for wage cuts, we estimate the impact of wage cuts on layoffs.
The smaller size of the coefficient for the treatment variable after six months in the estimation approach using Z2 rather than Z1 as the instrumental variable is not necessarily due to the lower empirical variation in the instrumental variable.
Here randomization acts as the instrumental variable, compliance status as the endogenous variable.
We used the PCP rate of discretionary colonoscopy as the instrumental variable for our analyses.
First, we re-run the IV analyses using the weighted allele score as the instrumental variable, rather than the simple count of the number of risk alleles.
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(12)–(13) is to define the exogenous variables for each equation as well as the instrumental variables for GMM analysis.
In the following sections, I describe the data as well as the instrumental variables strategy and some baseline results relating immigrant inflows to the likelihood that women have both recently given birth and are participating in the labor market.4 I then come back to the model just presented to gain insight into the mechanisms whereby low-skilled immigration may exert its effects.
Notwithstanding, we will check as a robustness test the instrumental variable solution.
The instrumental variable is simulated as a continuous variable.
As variables were included that might be correlated to the instruments, the results were found to be robust to threats to the exclusion restriction of the instrumental variables such as location of immunization centers and mobile immunization campaigns.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com