Two Authors Published a Study in 1992 of the Effect

question 15

Essay

Two authors published a study in 1992 of the effect of minimum wages on teenage
employment using a U.S.state panel.The paper used annual observations for the years
1977-1989 and included all 50 states plus the District of Columbia.The estimated
equation is of the following type $$E _ { i t } = \beta _ { 0 } + \beta _ { 1 } \left( M _ { i t } / W _ { i t } \right) + \gamma _ { 2 } D 2 _ { i } + \ldots + \gamma _ { n } D 51 _ { i } + \delta _ { 2 } B 2 _ { t } + \ldots + \delta _ { \mathrm { T } } \mathrm { B } 13 _ { \mathrm { t } } + u _ { i t }$$ where E is the employment to population ratio of teenagers, M is the nominal minimum
wage, and W is average wage in the state.In addition, other explanatory variables, such
as the prime-age male unemployment rate, and the teenage population share were
included.
(a)Briefly discuss the advantage of using panel data in this situation rather than pure cross
sections or time series.

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Definitions:

Recruiting

The process of identifying, attracting, screening, and hiring candidates for a job or organizational role.

Service Delivery Model

A framework that defines how services are offered to customers or internally within organizations, focusing on efficiency and quality of service.

Human Resource Department

The division within an organization that focuses on recruitment, management, and guidance of the employees.

Single Site

A location where a specific business, organization, or function operates independently.