assistance. You decide to estimate the causal effect of benefit generosity on unemployment Country A wants...
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assistance. You decide to estimate the causal effect of benefit generosity on unemployment Country A wants to evaluate its unemployment insurance (UI) program and it asks for your duration. While learning about Country A's UI program, you discover that workers who are laid off at a later age receive more generous benefits. Specifically, you find out that the benefit schedule as a function of the worker's exact age (in months) when laid off has the following structure: Weekly benefit 40 Age at Layoff You recognize that the benefit schedule has a discontinuity that provides you with a "natural experiment" (or a "quasi experiment"). Describe how you could use a regression-discontinuity (RD) design to estimate this effect. Describe the treatment group and the control group and explain how you would estimate the effect of benefit generosity on unemployment duration. A verbal description is sufficient. assistance. You decide to estimate the causal effect of benefit generosity on unemployment Country A wants to evaluate its unemployment insurance (UI) program and it asks for your duration. While learning about Country A's UI program, you discover that workers who are laid off at a later age receive more generous benefits. Specifically, you find out that the benefit schedule as a function of the worker's exact age (in months) when laid off has the following structure: Weekly benefit 40 Age at Layoff You recognize that the benefit schedule has a discontinuity that provides you with a "natural experiment" (or a "quasi experiment"). Describe how you could use a regression-discontinuity (RD) design to estimate this effect. Describe the treatment group and the control group and explain how you would estimate the effect of benefit generosity on unemployment duration. A verbal description is sufficient.
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In a regressiondiscontinuity RD design I would use the discontinuity in the benefit schedule as a na... View the full answer
Related Book For
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
Posted Date:
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