Observations 4,752 4,752 4,752 4,752 4,752 4,752 R-squared 0.107 0.074 0.076 0.108 0.075 0.079 Cragg-Donald Wald F-stat (1st stage) 95.398 49.06 44.564 36.35 36.348 33.23 Year FE YES YES YES YES YES YES County FE NO YES YES NO YES YES Industry FE NO NO YES NO NO YES Table 4. IV estimates for mediation on compromise outcomes Note: Standard errors are in parenthesis *** p<0.01, ** p<0.05, * p<0.1 5.3 Placebo-effects of mediation A potential concern is that the geographical instrument of mediation is picking up some unobservable factor that drives compromises and is spuriously correlated with the location. To try to address this issue, we construct a placebo sample of work mediator’s stoppages utilizing the fact that the collection of statistics of work stoppages in Sweden began in 1903, thus four years before the institution of mediation was introduced. In this placebo sample, we have geocoded all locations of work stoppages taking place between 1903 and 1907. We have also added a placebo-treatment of mediation by constructing dummies measuring the log of distance to the mediators of residency. If our 1907’s instrument is really picking up the causal effect of mediation, we would not expect to see any significant correlation between the placebo-treatment and the compromise dummy before the institution was actually put in place. The rationale for the placebo control is thus to test that the instrument really captures the effect of mediation, rather than some unobservable factor correlating with mediators location. In table 5 we show the regressions of the dummy and the work “placebo distance” stoppages 1903-1906. Similarly, we add a placebo dummy for whether the stoppage took place at the location of a future residency. All specifications include the same mediator’s variables as our baseline regression, including controls for year, industry and geography. In column 1, the correlation between the distance to the mediator and the compromise dummy is positive and insignificant for 1903-1906. Since the placebo mediation covers the four closest proceeding years to the initiation of the office, be also add the mediator’s
Observations 4,752 4,752 4,752 4,752 4,752 4,752 R-squared 0.107 0.074 0.076 0.108 0.075 0.079 Cragg-Donald Wald F-stat (1st stage) 95.398 49.06 44.564 36.35 36.348 33.23 Year FE YES YES YES YES YES YES County FE NO YES YES NO YES YES Industry FE NO NO YES NO NO YES Table 4. IV estimates for mediation on compromise outcomes Note: Standard errors are in parenthesis *** p<0.01, ** p<0.05, * p<0.1 5.3 Placebo-effects of mediation A potential concern is that the geographical instrument of mediation is picking up some unobservable factor that drives compromises and is spuriously correlated with the mediator’s location. To try to address this issue, we construct a placebo sample of work stoppages utilizing the fact that the collection of statistics of work stoppages in Sweden began in 1903, thus four years before the institution of mediation was introduced. In this placebo sample, we have geocoded all locations of work stoppages taking place between 1903 and 1907. We have also added a placebo-treatment of mediation by constructing dummies measuring the log of distance to the mediators of 1907’s residency. If our instrument is really picking up the causal effect of mediation, we would not expect to see any significant correlation between the placebo-treatment and the compromise dummy before the institution was actually put in place. The rationale for the placebo control is thus to test that the instrument really captures the effect of mediation, rather than some unobservable factor correlating with mediators location. In table 5 we show the regressions of the “placebo distance” dummy and the work stoppages 1903-1906. Similarly, we add a placebo dummy for whether the stoppage took place at the location of a future mediator’s residency. All specifications include the same variables as our baseline regression, including controls for year, industry and geography. In column 1, the correlation between the distance to the mediator and the compromise dummy is positive and insignificant for 1903-1906. Since the placebo mediation covers the four closest proceeding years to the initiation of the mediator’s office, be also add the
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