Suppose that you wanted to test the hypothesis that welfare benefit generosity induces people to become single
Question:
a. Which population would you choose to study in answering this question?
b. How would you use variation in welfare benefits to estimate the impact of welfare on single motherhood?
c. How would you know whether welfare benefit generosity influences single motherhood?
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a The only population that would be able to engage in this moral hazard behavior would be women of c...View the full answer
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