momeduc = motheduc * The data set also contains the variable, nearcol , which is
ID: 1201945 • Letter: M
Question
momeduc = motheduc *
The data set also contains the variable, nearcol, which is equal to 1 for people whose home is close to a college (i.e., community college or state university) and equal to 0 otherwise.
1. How large is the effect of college attendance on hourly wage?
2. Using these estimates, calculate the LATE. Compare your answer to the coefficient for coleduc from part (1)
3.) Who are the compliers in this application? Who are the always-takers and never-takers? Do you think there might be defiers?
lwage = 0 + Acoleduc + 2mom educ + 3exper + AIQ + u (1) where lwage is log of hourly wage, coleduc is a dummy variable indicating college attendance, which is our treatment variable, momeduc is mother's education level, exper is years of experience, and IQ is IQ score.Explanation / Answer
1. college attendance has much larger positive effect on on wage rate
other question are not defined properly
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