From the course: Causal Inference with Survey Data
Join today to access over 25,500 courses taught by industry experts.
Difference-in-difference estimation
From the course: Causal Inference with Survey Data
Difference-in-difference estimation
- [Instructor] Difference in difference estimation, often abbreviated to DiD, is a popular causal technique that is similar to fixed effects regression. It's an old technique, and that makes it one of the most straightforward causal methods to perform. At its simplest, it can be done by hand using only four numbers, and surprisingly, even the simple version can be as powerful as the most sophisticated causal methods presented in this course. The core idea is very simple. It compares the difference in outcomes before and after an intervention for both the treated and control groups, and the difference in the differences is the effect of the intervention. So how does DiD work? Well, let me explain using a famous study by Card and Kruger. The study underpins the 2021 Nobel Prize in Economics, and it highlights that you don't always need complex and highly specialized methods to make a big impact. Card and Kruger were interested in the effect of minimum wages on employment. Theory…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.