A practical guide to shift-share instruments

Borusyak, Kirill, Hull, Peter and Jaravel, Xavier ORCID: 0000-0001-9228-2137 (2025) A practical guide to shift-share instruments. Journal of Economic Perspectives, 39 (1). pp. 181-204. ISSN 0895-3309

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Abstract

A recent econometric literature shows two distinct paths for identification with shift-share instruments, leveraging either many exogenous shifts or exogenous shares. We present the core logic of both paths and practical takeaways via simple checklists. A variety of empirical settings illustrate key points.

Item Type:	Article
Additional Information:	© 2025
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
JEL classification:	R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R15 - Econometric and Input-Output Models; Other Models J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment J - Labor and Demographic Economics > J8 - Labor Standards: National and International > J82 - Labor Force Composition R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
Date Deposited:	25 Feb 2025 10:33
Last Modified:	30 Oct 2025 03:42
URI:	http://eprints.lse.ac.uk/id/eprint/127403

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