Let the Vertical Axis of a Figure Indicate the Average

Essay

Let the vertical axis of a figure indicate the average employment fast food restaurants. There are two time periods, t = 1 and t = 2, where time period is measured on the horizontal axis. The following table presents average employment levels per restaurant for New Jersey (the treatment group)and Eastern Pennsylvania (the control group). $\begin{array} { | l | c | c | } \hline & \text { PA } & \text { NJ } \\\hline \text { FTE Employment before } & 23.33 & 20.44 \\\hline \text { FTE Employment after } & 21.17 & 21.03 \\\hline\end{array}$ Enter the four points in the figure and label them $\bar { Y } \text { treatment, before }$ , $\bar { Y } ^ { \text {treatment } \text {, after } }$ , $\bar { Y } ^ { \text {control,before } }$ , and $\bar { Y } ^ { \text {control , after } }$ Connect the points. Finally calculate and indicate the value for $\hat { \beta } _ { 1 } ^ { \text {diffs-in-diffs } }$