Washington D.C. implements a policy beginning in 2037 requiring firms to provide paid child leave. You want to study the effect of this policy on firm employment and average wages. You know that Arlington, VA does not have such a policy. Year 2036 2037 Washington D.C. 5.5 5.8 5.9 6.1 Table 1: Average Firm Size (Workers) Arlington 1 1. Can you compare employment growth in Washington D.C. between 2036-2037? What is the potential confounder? 2. Can you compare the level of employment between Washington D.C. and Arlington in 2037? What is the potential confounder? 3. Suggest a strategy to estimate the effect of the paid leave policy. What assumption(s) are you making? What is the potential confounder? 4. Provide an estimate of the effect of the wage subsidy program. Compare it to what you would get in parts 1 and 2 and discuss. 5. A friend provides you with additional data for Washington D.C., Arlington, and Bethesda

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The articles discuss the implications of paid family leave laws particularly in Washington DC and ... View the full answer