NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Evaluating the Effect of an Antidiscrimination Law Using a Regression-Discontinuity Design

Jinyong Hahn, Petra Todd, Wilbert Van der Klaauw

NBER Working Paper No. 7131
Issued in May 1999
NBER Program(s):   LS

The regression discontinuity (RD) data design is a quasi-experimental design with the defining characteristic that the probability of receiving treatment changes discontinuously as a function of one or more individual characteristics. This data design occasionally arises in economic and other applications but is only infrequently exploited in evaluating the effects of a treatment. We consider the problem of identification and estimation of treatment effects under a RD data design. We offer an interpretation of the IV or so-called Wald estimator as a regression discontinuity estimator. We propose nonparametric estimators of treatment effects and present their asymptotic distribution theory. Then we apply the estimation method to evaluate the effect of EEOC-coverage on minority employment in small U.S. firms.

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Document Object Identifier (DOI): 10.3386/w7131

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