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DD setting: a before and after period, where the policy change was to raise the cap on covered earnings; control group is low earners. Using Kentucky and a total sample size of 5,626, the DD estimate of the policy change is about 19.2% (longer time on workers’ compensation) with t 2. 76. Using Michigan, with a total sample size of 1,524, the DD estimate is 19.1% with t 1. 22. (Adding controls does not help reduce the standard error.) There seems to be plenty of uncertainty in the estimate even with a pretty large sample size. Should we conclude that we really have no usable data for inference? 3. General Settings for DD Analysis: Multiple Groups and Time Periods The DD and DDD methodologies can be applied

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