Question 11

Evaluate the following policy using a difference-in-differences. One-half of provinces in a country ordered that all non-essential businesses are closed as of March 1st, 2020. The other half ordered that all non-essential businesses are closed as of May 1st, 2020. All non-essential businesses could reopen (in all provinces) as of June 30th, 2020. You have data from August 2019 to the end of June 2020.? For provinces that implemented earlier, their unemployment rate was 8% on average prior to the policy and 15% after the policy. For provinces that implemented later, their unemployment rate was 5% on average prior to the policy and 7% after the policy. What is the effect of implementing the policy on March 1st?

Would you please answer this question. Below is the formula sheet (Use if needed):

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