Cluster-Robust Inference: A Guide to Empirical Practice

James MacKinnon, Morten Nielsen and Matthew Webb

No 1456, Working Paper from Economics Department, Queen's University

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.

JEL-codes: C12 C15 C21 C23 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2022-03
New Economics Papers: this item is included in nep-ecm and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1456.pdf Third version 2022 (application/pdf)

Related works:
Journal Article: Cluster-robust inference: A guide to empirical practice (2023)
Working Paper: Cluster-Robust Inference: A Guide to Empirical Practice (2022)
Working Paper: Cluster-Robust Inference: A Guide to Empirical Practice (2022)
Working Paper: Cluster–robust inference: A guide to empirical practice (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1456

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