Total Hours of Work by All Recipients in the Survey Week Number of Recipients Who Total Number Worked at Some Time of Recipients in the Survey Week 1999 2000 1999 2000 TANF 4,392 1,217 1,568 15,578 20,698 NIT 468 131 213 1,638 2,535 Total 4,860 1,348 1,781 17,216 23,233
In 1999, 4,860 TANF recipients were asked how many hours they worked in the previous week. In 2000, 4,392 of these recipients were again subject to the same TANF rules and were again asked their hours of work during the previous week. The remaining 468 individuals were randomly assigned to a “Negative Income Tax” (NIT) experiment that gave out financial incentives for welfare recipients to work and subjected them to its rules. Like the other group, they were asked about their hours of work during the previous week. The data from the experiment are contained in the table below.(attached)
a. What effect did the NIT experiment have on the employment rate of public assistance recipients? Develop a standard difference-in-differences table to support your answer.
b. What effect did the NIT experiment have on the weekly hours worked of public assistance recipients who worked positive hours during the survey week? Develop a standard difference-in-differences table to support your answer.
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