Difference in differences methods have become very popular in applied work. These models are typically quite easy to implement and to interpret. However, performing inference with these models is not. This paper addresses one particular aspect that is likely to be very important in most...

We calibrate a model of labor demand to infer the employment response to a change in the minimum wage in the food away from home industry. Assuming a perfectly competitive labor market, the model predicts a 2.5 to 3.5 percent fall in employment in response to a 10 percent minimum wage change. We...