.) Use the data set WAGE2.DTA to answer this question. This sample includes wage

Question

.) Use the data set WAGE2.DTA to answer this question. This sample includes wage data but also data on worker IQ, the workers years of education (educ), and the years of education of the workers parents (meduc and feduc). There are binary variables indicating whether or not the worker is black (black), whether the worker lives in an urban area (urban), and whether the worker lives in the south census region (south). Using these data, estimate the population model educ = 0 + 1black + 2meduc + 3feduc + 4IQ + 5south + 6urban + u a. Although the data set includes 935 observations, only 722 are used in the regression. Why? b. Interpret the coefficient on black. c. Using statas test command, test the hypothesis that the coefficient of meduc equals the coefficient of feduc, using a 10% significance level. d. Based on the regression results, which leads to a bigger difference in the amount of education a worker gets, other things equal: a one standard deviation difference in IQ, or a one standard deviation difference in the amount of education the persons father had?

Explanation / Answer

c. Using test command, test the hypothesis that the coefficient of meduc equals the coefficient of feduc, using a 10% significance level.

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.