Exercise

Unhappiness at Unter: Identifying Heterogeneous Outcomes - ATE

The transportation network company, Unter Technologies, is interested in improving their employee morale and reducing employee turnover rate by downsizing their Human Resources (HR) Department.

To make sure this would not antagonize their workforce, Unter conducts an experiment: With a balanced sample of employees, Unter tells a treatment group that the HR Department will be downsized in the following year, and tells a control group that the HR Department will remain the same size in the following year. Miraculously, these two groups don't end up discussing this with each other. Unter then surveys the employees to find out whether employees plan to look for new jobs, with response options 0="No" and 1="Yes."

With the dataframe, UnterHR, determine whether there is a negative or positive average treatment effect of reducing the size of Unter's HR department on employee turnover. Specifically:

Instructions

100 XP
  • 1) Find the mean rate of LeaveJobin the control condition (Treatment=0)
  • 2) Find the mean rate of LeaveJobin the treatment condition (Treatment=1)
  • 3) Determine the average effect of reducing the size of HR (treatment) on whether employees plan to leave their job in the following year (LeaveJob) by subtracting the mean rate of people's intention to leave their job in the control condition from the mean rate of people's intention to leave their job in the treatment condition.