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I am using data from a variety of sources to measure if migration inflows lead to an increase in unskilled worker wages. I am controlling for number of illegal immigrants, migrant unemployment, etc. I think that I will see results that show that an increase in migration will lead to an increase in average unskilled worker wages in relation to the median income because I think they will be filling gaps in the work force. Anyway, would I want to lag my dependent variable in this analysis? Or use the difference-in-difference statistical test?

Thank you!

Elisa A D'Amico
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  • What is your rationale for potentially using a lagged DV? And what kind of diff-in-diff would it be? What would be the intervention (i.e., pre- and post- periods) and treatment and control groups? And why are you limiting yourself to these two methods? – AlexK Apr 08 '19 at 05:26
  • There is already a question concerning using lagged dependent variable in regression, with answers that talk about the pros and cons of this method: https://stats.stackexchange.com/q/52458/241093 – AlexK Apr 08 '19 at 05:28

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