  Methods for cluster-robust inference are routinely used in economics and many
other disciplines. However, it is only recently that theoretical foundations
for the use of these methods in many empirically relevant situations have been
developed. In this paper, we use these theoretical results to provide a guide
to empirical practice. We do not attempt to present a comprehensive survey of
the (very large) literature. Instead, we bridge theory and practice by
providing a thorough guide on what to do and why, based on recently available
econometric theory and simulation evidence. To practice what we preach, we
include an empirical analysis of the effects of the minimum wage on labor
supply of teenagers using individual data.
