From the course: Program Evaluation for Data Science
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Practice difference in difference
From the course: Program Evaluation for Data Science
Practice difference in difference
- In this example, we're going to examine a data set related to workers' compensation. Specifically, it contains data from Kentucky, a state that in 1980, raised the cap on weekly earnings that were covered by workers' compensation. We want to know if this new policy caused higher income workers to be more likely to claim for longer duration of benefits. In this dataset, we have individual level information about the outcome of interest, an indicator for whether the person was above the income threshold, and the time indicator that reflects whether the data is from before or after 1980. Additionally, there's some data on the demographics of the claimant, including the age, sex, and marital status, as well as the injury type claimed such as head, neck, back, or extremity. You have the data to allow you to compare across states, specifically Kentucky versus Mississippi, but I want you to focus for now on Kentucky only. You should start by selecting the Kentucky data and examine the…
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