Over ID Tests

[vdquadros]

Hi Isaac,

In the meeting we talked about the Over ID test.

Could you please confirm that our Over ID test would look like the below?

ivregress 2sls  `y'  `controls' (`x'= shric*)  [aweight=`weight'], vce(robust)
estat overid, forceweights
local J_2sls = string(r(score), "%12.2f")
local Jp_2sls = "[" + string(r(p_score), "%12.2f") + "]"

where y is the difference in wages, the controls are the same as Card's controls, x is the relative share of natives and imm, and the shric* is the share of imm fixed in 1980 (for all countries by city).

If so, the Over ID test does not reject the null (p = 0.2204).

This is for High School workers.

Since you did not write the code, I am also copying below the equivalent piece of code for the canonical Bartik and the ADH example.

Canonical:

ivregress 2sls  `y'  `controls' czone_* year_*  (`x'= t1990_init_sh_ind_* t2000_init_sh_ind_*  )  [aweight=`weight'], vce(robust)
estat overid, forceweights
local J_2sls = string(r(score), "%12.2f")
local Jp_2sls = "[" + string(r(p_score), "%12.2f") + "]"

ADH:

ivregress 2sls  `y'  `controls' i.t2  (`x'= t1990_sh_ind_2011-t1990_sh_ind_3931 t2000_sh_ind_2011-t2000_sh_ind_3931)  [aweight=`weight'], vce(robust)
estat overid, forceweights
local J_2sls = string(r(score), "%12.2f")
local Jp_2sls = "[" + string(r(p_score), "%12.2f") + "]"

[econisaac]

Hi Victoria,

I think this looks right (and it is interesting that the overid tests don't reject....it is an interesting contrast to the other settings....). I'm checking with paul.

best, isaac

[econisaac]

Hi Victoria,

Paul confirms that this looks right.

isaac