1.What “natural experiment” are you using? Which regions are your “treatment” regions (experienced changes in the minimum wage)? What are your “control” regions (no change in minimum wage)? What industry are you examining?
I would like to focus on the vegetable and fruit farming in Indiana and Ohio for my examination. I choose students that did not go to college as my worker characteristic. I’ll set Indiana as the the control region and Ohio the treatment region.
2.Why does this particular “natural experiment” seem convincing to you? Why should this comparison get you information on the effect of the minimum wage and NOT the effect of other differences between regions? Why are these two groups “comparable”?
The graph show that the minimum wage in Indiana starts to increase rapidly from 2010 to 2015, but on the other hand, Ohio did not change at all. Which might indicate that more and more students finish their college degree at Indiana because graduate students target on better jobs, so the industry has to increase the minimum wage to attract more employees. For Ohio, it seems that non-college students are still the same amount in the state, so they do not need to increase the minimum wage. People would be satisfy their current salary. I think the vegetable and fruit farming industry is interesting to me because agriculture is one of the largest industry in America, although it is not the main role in America GDP, it still plays a part of it. These two states lie right beside each other, which means the weather and environment would be similar.