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Unformatted text preview: Econ 139 Lecture 21 Questions Treatment E/ects (Note: the &amp;rst part of the question is also on PS 9) In 1992, there was an increase in the (state) minimum wage in New Jersey, but not in a neighboring location (eastern Pennsylvania). A classic study in labor econiomics by Card and Krueger looked at how employment changed in New Jersey fast food restaurants relative to Pennsylvania around the time of the change, in order to assess whether employment increased (as it might if fast food restaurants have monopsony power) or decreased. To calculate the ^ &amp; diffs &amp; in &amp; diffs 1 you need the change in the treatment group and the change in the control group. To do this, the study provides you with the following information, Pennsylvania New Jersey Employment before 23.33 20.44 Employment after 21.17 21.03 The numbers are average employment per restaurant. (3 points) Calculate the change in the treatment group....
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- Spring '08
- Econometrics, treatment group, dif f