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(10 points) Interpret a regression discontinuity (RD) quasi-experiment. Suppose that the government of Jakarta, Indonesia, wants to increase women's workforce participation. Prior research suggests that
(10 points) Interpret a regression discontinuity (RD) quasi-experiment. Suppose that the government of Jakarta, Indonesia, wants to increase women's workforce participation. Prior research suggests that lack of access to affordable childcare is one of main barriers to workforce participation of mothers, particularly for women from lower-income households. Suppose that the government offers a 50% childcare subsidy for approved childcare facilities, to households below a poverty threshold of 200,000 Rupiah per capita, per month. Two years after the subsidy is implemented, you are asked to evaluate the subsidy program. Suppose that you decide to use an RD design, collecting representative data from households just falling above and below the cutoff, and decide to study the effect of the subsidy on hours worked per week. a. (5 points) Interpret the results of the RD from the following figure, including providing the RD estimate of the impact of the subsidy. Hours per week 45.2 39.6 200,000 (10 points) Interpret a regression discontinuity (RD) quasi-experiment. Suppose that the government of Jakarta, Indonesia, wants to increase women's workforce participation. Prior research suggests that lack of access to affordable childcare is one of main barriers to workforce participation of mothers, particularly for women from lower-income households. Suppose that the government offers a 50% childcare subsidy for approved childcare facilities, to households below a poverty threshold of 200,000 Rupiah per capita, per month. Two years after the subsidy is implemented, you are asked to evaluate the subsidy program. Suppose that you decide to use an RD design, collecting representative data from households just falling above and below the cutoff, and decide to study the effect of the subsidy on hours worked per week. a. (5 points) Interpret the results of the RD from the following figure, including providing the RD estimate of the impact of the subsidy. Hours per week 45.2 39.6 200,000
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