1 论文标题
Putting Structure on the RD Design: Social Transfers and Youth Inactivity in France
2 作者信息
Olivier Bargain
Karina Doorley
3 出处和链接(比如,NBER working paper No.11000)
IZA DP No. 7508 July 2013
http://ftp.iza.org/dp7508.pdf
4 摘要
Natural experiments provide explicit and robust identifying assumptions for the estimation of
treatment effects. Yet their use for policy design is often limited by the difficulty in
extrapolating on the basis of reduced-form estimates of policy effects. On the contrary,
structural models allow us to conduct ex ante analysis of alternative policy situations.
However, their internal validity is often questioned. In this paper, we suggest combining the
two approaches by putting structure on a regression discontinuity (RD) design. The RD
estimation exploits the fact that childless single individuals under 25 years of age are not
eligible for social assistance in France. The behavioral model is identified by the discontinuity
and by an additional exclusion restriction on the form of financial incentives to work. We
investigate the performance of the behavioral model for predictions further away from the
threshold, check external validity and use the model to predict important counterfactual
policies, including the extension of social assistance to young people and the role of in-work
benefit components.