Synthetic Control Estimation Beyond Comparative Case Studies: Does the Minimum Wage Reduce Employment?

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2022
Volume: 40
Issue: 3
Pages: 1302-1314

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Panel data are often used in empirical work to account for fixed additive time and unit effects. The synthetic control estimator relaxes the assumption of additive fixed effects for comparative case studies in which a treated unit adopts a single policy. This article generalizes the synthetic control estimator to estimate parameters associated with multiple discrete or continuous explanatory variables, jointly estimating the parameters and synthetic controls for each unit. I apply the estimator to study the disemployment effects of the minimum wage, estimating that increases in the minimum wage reduce employment.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:40:y:2022:i:3:p:1302-1314
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-29