Iowa has decided to run a quasi-experiment in regard to its workfare program and the program’s impact on incentives. Officials think that workfare increases the incentives to individuals to earn more money in addition to welfare. Two hundred recipients are selected; 120 are randomly assigned to a workfare program, and 80 are assigned to a control group. By follow-up interviews, the state finds out how much outside income per week is earned by each individual, with the following results:
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