Consider the following hypothetical difference-in-differences results concerning the average of hours worked in "big-box stores" between North and South Dakota before and after North Dakota increased its minimum wage. Average Weekly Hours per Big-Box Establishment
$\begin{array}{lcc}
& \text { North Dakota } & \text { South Dakota } \
\text { Before } \mathrm{ND} \text { minimum wage increase: } & 128.4 & 110.3 \
\text { After } \mathrm{ND} \text { minimum wage increase: } & 114.6 & 108.2
\end{array}$ The minimum wage increase is associated with average hours of work decreasing by how much per week in North Dakota relative to South Dakota?
A) 2.1 hours
B) 11.7 hours
C) 13.8 hours
D) 15.9 hours
E) 20.2 hours

Question

Consider the following hypothetical difference-in-differences results concerning the average of hours worked in "big-box stores" between North and South Dakota before and after North Dakota increased its minimum wage. Average Weekly Hours per Big-Box Establishment
$\begin{array}{lcc} 
& \text { North Dakota } & \text { South Dakota } \
\text { Before } \mathrm{ND} \text { minimum wage increase: } & 128.4 & 110.3 \
\text { After } \mathrm{ND} \text { minimum wage increase: } & 114.6 & 108.2
\end{array}$ The minimum wage increase is associated with average hours of work decreasing by how much per week in North Dakota relative to South Dakota?
A) 2.1 hours
B) 11.7 hours
C) 13.8 hours
D) 15.9 hours
E) 20.2 hours

Quizplus · Accepted Answer

The difference-in-differences estimate is calculated as the change in the outcome variable in the treatment group (North Dakota) minus the change in the outcome variable in the control group (South Dakota). In this case, the change in average weekly hours per big-box establishment in North Dakota is 128.4 - 114.6 = 13.8 hours, and the change in average weekly hours per big-box establishment in South Dakota is 110.3 - 108.2 = 2.1 hours. Therefore, the difference-in-differences estimate is 13.8 - 2.1 = 11.7 hours.

Consider the Following Hypothetical Difference-In-Differences Results Concerning the Average of Hours