Experiments

Question 1

Card

Answer 1

Use of natural experiments: study design in which subjects are exposed to as
good as random variation caused by nature, institutions, or policy
changes

1. Impact of minimum wage on employment > Treatment: rise minimum wage in New Jersey & Control: Pennsylvania > sample > minimum wage had no impact on the number of employees

Question 2

Angrist & Imbens

Answer 2

1. Earnings by length of study, birth month affects length of education etc.
2. Local average treatment effect (LATE)