Hi Scott, one comment and a quick question. First the comment: I really appreciate your substack; I feel I’ve learned a lot. The (hopefully) quick question: with respect to Baker et al (2021), you mention that they include the TWFE plus cohort*state fixed effects. Do they also include cohort*year indicators? I interpret the Baker et al paper as suggesting as much. Or is it cohort*relative event year indicators (eg t-4,t-3,t-2 etc rather than the actual year). We’re attempting to implement this method and want to get it right. Thanks
Three minimum wage papers walk into a bar...
Hi Scott, one comment and a quick question. First the comment: I really appreciate your substack; I feel I’ve learned a lot. The (hopefully) quick question: with respect to Baker et al (2021), you mention that they include the TWFE plus cohort*state fixed effects. Do they also include cohort*year indicators? I interpret the Baker et al paper as suggesting as much. Or is it cohort*relative event year indicators (eg t-4,t-3,t-2 etc rather than the actual year). We’re attempting to implement this method and want to get it right. Thanks