HW3d-Chapter 21_Xtns - Chapter 21 PRS: HW3d 1. The textbook...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 21 PRS: HW3d 1. The textbook discusses a paper by Eissa and Leibman that examines the effect of the Earned Income Tax Credit on single mother labor supply. The paper does so by utilizing the fact that some expansions of the program were modest for families with only one child but much larger for families with two or more children. Thus, the researchers used a difference-in-difference strategy to compare the labor supply of single mothers with two or more children to the labor supply of single mothers with only one child. a. What type of empirical strategy is this? b. What is the treatment group and what is the control group? c. Suppose that over this period, employers become more willing to hire and accommodate single mothers. Would this fact bias the estimates? Explain. 2. Suppose that James and Kristine are married and have two children. James is the primary earner in the household. Kristine is considering joining the labor force, at which point she would earn $25 per hour for 40 hours per week. The cost of child care would
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/23/2011 for the course ECON 4504 taught by Professor Robertpennington during the Spring '11 term at University of Central Florida.

Ask a homework question - tutors are online