Policymakers have been interested in the effect of minimum wage on the employment rate. From what you have learned this semester, propose two methods to causally estimate the impact of minimum wage on the employment rate. Carefully explain how each method helps you establish a causal relationship.

Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Unemployment
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Policymakers have been interested in the effect of minimum wage on the employment rate. From what you have learned this semester, propose two methods to causally estimate the impact of minimum wage on the employment rate. Carefully explain how each method helps you establish a causal relationship.

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