Suppose that in order to determine how non-labor income affects labor supply,you give everyone born on an even-numbered day in August of 1979 $1,000 per year and look at how they change their labor supply compared to people born on odd-numbered days in August of 1979.This approach is which of the following?
A) time series analysis
B) cross-sectional regression analysis
C) a randomized trial
D) a quasi-experiment

Question

Quizplus · Accepted Answer

This is a randomized trial where the treatment (receiving $1,000 per year) is randomly assigned based on the birthdate. This allows for causal inference to be drawn about the effect of non-labor income on labor supply. Time series analysis looks at changes in a single variable over time, while cross-sectional regression analysis looks at the relationship between multiple variables at a single point in time. Quasi-experiments are similar to randomized trials, but the treatment assignment is not completely random, which may introduce bias.

Suppose That in Order to Determine How Non-Labor Income Affects