Sample interview questions: Can you describe a specific project where you applied econometric techniques to analyze economic data?
Sample answer:
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Project Title: The Impact of Minimum Wage Increase on Labor Market Outcomes in the United States
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Objective: To analyze the impact of minimum wage increase on various labor market outcomes, including employment, unemployment, and wages.
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Data: The project utilized data from the Current Population Survey (CPS) and the Quarterly Census of Employment and Wages (QCEW) from the Bureau of Labor Statistics.
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Econometric Techniques:
- Difference-in-Differences (DID) Method: The DID method was used to estimate the causal effect of minimum wage increase by comparing changes in labor market outcomes in states that increased their minimum wage to changes in states that did not.
- Propensity Score Matching (PSM): PSM was used to control for potential confounding factors that could bias the DID estimates. PSM matched firms and workers in treatment and control groups based on their propensity to be exposed to the minimum wage increase.
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Results:
- The DID estimates showed that minimum wage increases had a statistically significant negative impact on employment in low-wage industries, particularly among younger and less educated workers.
- PSM estimates confirmed the negative impact of minimum wage increases on employment, but the effects were generally smaller in magnitude than the DID estimates.
- The findings suggest that minimum wage increases can have mixed effects on labor market outcomes, and the overall impact depends on various factors, including the size o… Read full answer