PLEASE HELP ME CREATE THE CODE FOR EACH QUESTION ON STATA:

Question 1

In order to evaluate the impact of the increased minimum wage on employment, it is important first to check that NJ did in fact adhere to the new minimum wage law, and that PA did not. This can be done by observing the distribution of starting wages in each state, before and after the policy change. The code for producing such a histogram is given below:

twoway (hist wage_st if state == 1 & time == [0 or 1] & inrange(wage_st, 4.25, 5.55), color(red%30) percent width(0.10) start(4.25)) || /// (hist wage_st if state == 0 & time == [0 or 1] & inrange(wage_st, 4.25, 5.55), color(green%30) percent width(0.10) start(4.25)), /// graphregion(color(white)) xlab(4.25(0.1)5.55, angle(90)) ti("graph title") /// legend(lab(1 "New Jersey") lab(2 "Pennsylvania") region(lcolor(white)))

Where:

wage_st = is the starting wage of employees ($ per hour) state = indicator for being in NJ (=1) or PA (=0) time = indicator for the time period being after the reform (=1) or before the reform (=0) (note: you will have to select either 0 or 1) graph title = the title of your graph Task: Produce a histogram that shows the distribution of starting wages in February 1992 for stores in PA and stores in NJ (i.e. set time == 0 in the graph code). Put the graph title as February 1992 and export your figure as a PNG file. Upload this PNG file here.

Question 2 Repeat the same process as above but this time for the starting wages in November 1992 for stores in PA and stores in NJ (i.e. set time == 1 in the graph code). Put the graph title as November 1992 and export your figure as a PNG file. Upload this PNG file here.

Question 3 Use a Stata command(s) to calculate the change in FTE employment (fte_emp) between NJ and PA in February 1992 (time = 0). Hint: you could use the commands sum, tabstat, or ttest.

Fill in the blanks based on your findings:

1. The mean FTE employment in NJ in February 1992 was?

2. The mean FTE employment in PA in February 1992 was?

3. Taking (1) 3dp minus (2) 3dp, the difference in NJ's and PA's FTE employment in February 1992 is?

Question 4 Use a Stata command(s) to calculate the change in FTE employment (fte_emp) between NJ and PA in November 1992 (time = 1). Hint: you could use the commands sum, tabstat, or ttest.

Fill in the blanks based on your findings:

1. The mean FTE employment in NJ in November 1992 was?

2. The mean FTE employment in PA in November 1992 was?

3. Taking (1) 3dp minus (2) 3dp, the difference in NJ's and PA's FTE employment in November 1992 is?

Question 5 Based on your answers in Q4 and Q5, manually compute the difference-in-differences (DD) estimate for the effect of minimum wage increases on FTE employment by filling in the following blanks (all 3dp):

Hint: DD = (NJ PA if time== 1) (NJ-PA if time== 0)

1. The difference in FTE employment between the two states in November 1992 is?

2. The difference in FTE employment between the two states in February 1992 is?

3. Calculating (1) minus (2), the DD estimate?

Question 6 Now run a DD regression to estimate the causal effect of the minimum wage increase on FTE employment. The Stata code for such regression is as follows:

reg fte_emp state ## time

where fte_emp is the outcome variable measuring FTE employment and ## creates the full interaction between the state and time variables. Based on your regression results, fill in the following gaps by rounding answers to 3dp:

1. The coefficient on the interacted term is?

2. The standard error on the interacted term is?

3. The p-value of the interacted term is?

Question 7 The dataset includes a categorical variable chain which =1 if the restaurant is a Burger King, =2 if the restaurant is a KFC, =3 if the restaurant is a Roy Rogers (Roys), =4 if the restaurant is a Wendys. Run the DD regression as stated below four times, conditioning the chain variable to be different values each time.

reg fte_emp state ## time if chain == ?

Based on your regression results, fill in the following gaps by rounding answers to 3dp:

1. The DD estimate for the effect of minimum wage increase on FTE employment for Burger King chains is?

2. The DD estimate for the effect of minimum wage increase on FTE employment for KFC chains is?

3. The DD estimate for the effect of minimum wage increase on FTE employment for Roys chains is?

4. The DD estimate for the effect of minimum wage increase on FTE employment for Wendys chains is?