I'm trying to figure out the right way to implement an estimator.
Some notes:
I'm using an individual-month level dataset, my treatment occurs at the state level, at different times for different states, and turns off at some later point. I'm using state and time fixed effects in my model as well. I hypothesize that my treatment effect will vary by gender.
"treat" is an indicator that in the current month-state, the treatment is either on (1) or off (0). I don't include a control for the control vs treated group because that appears to be subsumed by state FEs.
My base specification is as follows:
Code:
reghdfe emp i.treat $controls [pw=panlwt] if child==1 & age>=18 & age<65, absorb(month state) vce(cluster state)
Code:
reghdfe emp i.treat##i.sex $controls [pw=panlwt] if child==1 & age>=18 & age<65, absorb(month state) vce(cluster state)
1) Would I just describe the second equation as a difference-in-differences with treatment effect heterogeneity?
2) As I understand, a triple difference estimator isn't intended for treatment effect heterogeneity, but rather to weaken the parallel trends assumption. Is that right?
3) If (2) is true, then a triple differences specification (where sex is interacted with everything) would be incorrect as a way of identifying treatment effect heterogeneity?
Thanks in advance.
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