Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/247198 
Year of Publication: 
2021
Series/Report no.: 
Queen’s Economics Department Working Paper No. 1456
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
Methods for cluster-robust inference are routinely used in economics and many other disciplines. However, it is only recently that theoretical foundations for the use of these methods in many empirically relevant situations have been developed. In this paper, we use these theoretical results to provide a guide to empirical practice. We do not attempt to present a comprehensive survey of the (very large) literature. Instead, we bridge theory and practice by providing a thorough guide on what to do and why, based on recently available econometric theory and simulation evidence. The paper includes an empirical analysis of the effects of the minimum wage on teenagers using individual data, in which we practice what we preach.
Subjects: 
clustered data
grouped data
cluster-robust variance estimator
CRVE
robust inference
wild cluster bootstrap
JEL: 
C12
C15
C21
C23
Document Type: 
Working Paper

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