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Establishing causation: minimum wage and employment

You want the causal effect of raising the minimum wage on employment. You cannot randomize which places raise it, but only some states enacted an increase while neighbors did not.

Describe how you would estimate the causal effect from this observational setting. Name at least two identification strategies and the key assumption each relies on.

Your answer

This one is open-ended. Work it through, then check your reasoning against the full solution.

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