Lesson 9
Panel data
Big question
Why is it powerful to observe the same units over time?
Lesson progress
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Big question
Concept
Activity
Quiz
Learning objectives
- Explain panel data in plain language.
- Use panel unit correctly in an interpretation.
- Connect the lesson idea to a formula, graph, Python result, or real example.
Simple explanation
Panel data follows the same units repeatedly. This lets us study both differences between units and changes within the same unit over time.
Key terms
- Panel unit
- The person, firm, region, or country followed over time.
- Within change
- A change for the same unit across periods.
- Between difference
- A difference across units.
- Balanced panel
- A panel where every unit is observed in every period.
Panel notation
Example
If the same workers are surveyed every year, we can ask how a worker's wage changes after completing more education or training.
Checkpoint activity
Pause and explain this lesson's main idea in your own words before moving forward.
Try it yourself
Write one plain-English sentence explaining the main idea from this lesson.
Common mistakes
Check these before you move on.
A regression coefficient describes a pattern unless the assumptions or research design support a causal interpretation.
Quick quiz
Panel data uses which two indexes?
Key takeaway
Panel data can reveal changes over time for the same units.