Data set is big hence I uploaded it on OneDrive with name \"pencil\". here is th
ID: 3267994 • Letter: D
Question
Data set is big hence I uploaded it on OneDrive with name "pencil". here is the link:-
https://1drv.ms/x/s!AnCfB5fz9u5ZgfsysBPWLSXOiOT_QQ
Handout II. CoMPUTER USE AND WAGES I have estimated a variety of statistical models to try to answer the question: Do employees who use computers at work receive a higher wage rate as a result of their computer skills? I begin by summarizing some simple ordinary least squares (OLS) estimates. The analysis is based on data from the October 1984 and 1989 CPS. The sample consists of workers age 18-65. (See Appendix A for further details of the sample.) My initial approach is to augment a standard cross-sectional earnings function to include a dummy variable indicating whether an individual uses a computer at work. Let C, represent a dummy variable that equals one if the ith individual uses a computer at work, and zero otherwise. Observation i's wage rate W is assumed to depend on Ci, a vector of observed characteristics X, and an error ei. Adopting a log-linear specification, where and are parameters to be estimated. Section III considers the effect of bias because of possible correlation between C, and e Table II reports results of fitting equation(1) by OLS, with varying sets of covariates (X). In columns (1) and (4) a computer use dummy variable is the only right-hand-side variable. In theseExplanation / Answer
coefficient of education in the asked model (3) = 0.048
%y=1001x
“if we change x by 1 (unit), we’d expect our y variable to change by 1001 percent
hence
if we increase education by 1 year , wage will increase by 100 * 0.048 = 4.8 %
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