Suppose a state were to cut the welfare guarantee from $6,000 to $3,000 between 2012 and 2014.Furthermore,suppose that hours of work per year among single mothers rose from 900 to 1,200.Which of the following must be TRUE if the time series estimate of the effect of the reduction in the guarantee is to be unbiased?

Question

Quizplus · Accepted Answer

To ensure an unbiased estimate of the effect of the reduction in the welfare guarantee on hours worked, it is crucial that there are no other confounding factors, such as substantial economic growth or decline, that could also influence the change in hours worked. This ensures that the observed change can more confidently be attributed to the policy change rather than external economic conditions.

Suppose a State Were to Cut the Welfare Guarantee from $6,000