Given the regression results Unemployment Rateit = ? + 0.8 (0.3) × Alabamait - 0.4 (0.2) × South Carolinait + 0.2 (0.3) × North Carolinait + 0.4 (0.12)MinimumWageit - 0.1 (0.1)Yeart, where the coefficients are reported with their standard errors in parenthesis, how should we interpret the coefficient for minimum wage?
A. An increase in minimum wage will increase the unemployment rate, holding fixed (time constant) differences across states.
B. An increase in minimum wage will increase the unemployment rate.
C. An increase in minimum wage will increase the unemployment rate, holding fixed the downward trend in unemployment rates occurring across all of these three states.
D. An increase in minimum wage will increase the unemployment rate, holding fixed (time constant) differences across states, and the downward trend in unemployment rates occurring across all of these three states.
Answer: D
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