Suppose you are a researcher designing a study on the returns to education using an education bill passed by your state legislature in 1985. The bill, once law, substantially increased education funding for all elementary schools. Your treatment group will be children born between 1981 and 1991 and your control group will be children born from 1965 to 1975. You will study both groups’ wages as adults, which you have obtained from your state’s Department of Revenue.

a. What economic rationale for government involvement in the provision of education might undermine your research design?

b. Consider Duflo (2004), discussed in the chapter. How might you draw inspiration from the design of that study to improve your own research design?