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Imagine you work for a research firm that specializes in economic policy analysis. You are tasked with assessing the impact of a recent minimum wage
Imagine you work for a research firm that specializes in economic policy analysis. You are tasked with assessing the impact of a recent minimum wage increase on the employment levels of fast-food workers in two neighboring states, State A and State B. The minimum wage in State A was increased from $7.25 per hour to $9.00 per hour on January 1, 2022, while State B kept its minimum wage at $7.25 per hour during the same period. You have employment data for fast-food workers for the year 2021 (before the increase) and the year 2022 (after the increase). Data: In State A in 2021 (before the increase), there were 5,000 fast-food workers, and in 2022 (after the increase), there were 4,800 fast-food workers. In State B in 2021, there were 4,000 fast-food workers, and in 2022, there were 4,200 fast-food workers. Calculate the difference-in-differences (DID) estimate for the impact of the minimum wage increase on fast-food employment. Group of answer choices -200 workers 200 workers -400 workers 400 workers
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