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Apply causal inference to a case study
A topical economic policy debate in many
Apply causal inference to a case study
A topical economic policy debate in many regions centres around the effect that introducing a minimum wage has on employment. Having engaged with the notes in this unit, you are encouraged to expand your thinking around the problem of causal inference and how it influences the design of research on this topic. This exercise provides an opportunity to practically apply the theory that you have learnt.
Step 1: Read the influential article by David Card and Alan Krueger (1994) on the impact of a minimum wage on employment. You are also encouraged to read a critique of the Card and Krueger study, as well as reviews of later developments in research on this topic, such as the article by the Economic Policy Institute on study design in minimum-wage research.
Step 2: Spend some time investigating and reflecting on the following four questions:
Why did the authors choose this research design?
What confounding variables are the authors trying to avoid?
Do you agree with the conclusions they have drawn from the data?
If you were a policymaker, would you feel confident using this research as the foundation for your policy? Why, or why not?
For your own enrichment, discuss your answers to these questions in the class-wide discussion. This provides a good opportunity to engage with your fellow students.
Navigate to the class-wide discussion to join the discussion.
1- a critique of the Card and Krueger study. Link:
2- study design in minimum-wage research. Link
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