Consider the following hypothetical scenario: London introduced a mandatory living wage in 2016, but other regions did not. The mandatory living wage required employers to pay their workers more. The table below shows weekly hours worked before and after the introduction of the mandatory living wage across regions. Average Weekly Hours The rest of the UK Before the introduction of the living wage: London 42.4 37.2 36.3 35.0 After the introduction of the living wage: Did the introduction of the mandatory living affect weekly hours worked? If yes, by how much, and what key assumption(s) is (are) required for a causal interpretation?
Consider the following hypothetical scenario: London introduced a mandatory living wage in 2016, but other regions did not. The mandatory living wage required employers to pay their workers more. The table below shows weekly hours worked before and after the introduction of the mandatory living wage across regions. Average Weekly Hours The rest of the UK Before the introduction of the living wage: London 42.4 37.2 36.3 35.0 After the introduction of the living wage: Did the introduction of the mandatory living affect weekly hours worked? If yes, by how much, and what key assumption(s) is (are) required for a causal interpretation?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the following hypothetical scenario: London introduced a mandatory living wage in 2016, but other regions did not. The mandatory living wage required employers to pay
their workers more. The table below shows weekly hours worked before and after the introduction of the mandatory living wage across regions.
Average Weekly Hours
Before the introduction of the living wage:
London
42.4
37.2
The rest of the UK
36.3
35.0
After the introduction of the living wage:
Did the introduction of the mandatory living affect weekly hours worked? If yes, by how much, and what key assumption(s) is (are) required for a causal interpretation?
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