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.

---

Definitions:

Proofreading Process

The act of reviewing written material to correct grammatical, spelling, punctuation, and formatting errors to ensure accuracy and clarity.

Social Media Networks

Online platforms that enable users to create content, share experiences, and connect with others.

Short Messages

Concise forms of communication, often utilized in texts, emails, or social media, aimed at quick information exchange.

Proofreading

The process of reading and correcting written material to ensure it is free of errors, such as typos, grammatical mistakes, and punctuation errors.