Kernel density estimator to plot the two densities, Macroeconomics

The data is posted on Blackboard. Download the data lfs4.dta on your personal computer. This data is from the Labour Force Survey 2003. In STATA, add enough memory to open the data set (Set memory 300) and open the data file. Refer to the Record Layout for reference with the variable names. Note that all your results should be weighted to account for the stratified sampling frame of the LFS. Include a copy of the do file with your output.

a. What is the raw average gender log hourly wage gap? How could you get this number in a regression framework? Use descriptive commands such as summarize

b. What was the union density (% workers covered by union)? Is the dispersion of logwages much larger in the nonunion sector than in the union sector? Use the kernel density estimator to plot the two densities.

kdensity lwage [weight=fweight] if unioncv==1, gauss width(0.05)

Is there a min.wage effect in the non-union sector (The min. wage ranges between $7.00 and $8.00?)

c. Is the dispersion of logwages much larger in the public sector than in the private sector? (cowmain = class of worker)

d. Is the dispersion of logwages much larger among females than men?

In the LFS educational attainment is available in 6 categories and age in 12 categories. Generate categorical variable dummies for age and education (for instance, use tab educ_90, gen(edd)). Run a regression of wages on education, age and gender and save the estimated coefficients for education in a single vector (Tip: after reg, gen betaed=0; replace betaed=_b[edd2] id edd2==1; ...replace betaed=_b[edd7] id edd7==1 ) Save your data.

a. Is the male advantage reduced when one controls for these human capital variables? Explain. Are there other controls in your data set that can help reduce the gender differential?

b. Construct a years of schooling variable. Specify how you assign numerical values to each category. Construct an experience variable (gen exp= age-years of education-6) and its square. Substitute the level of schooling dummies with the years of education c. Has the age-earnings profile of high school educated workers the same shape as for university educated workers? Plot these in the same graph, what is the cross over age?

Posted Date: 3/9/2013 4:50:10 AM | Location : United States

Related Discussions:- Kernel density estimator to plot the two densities, Assignment Help, Ask Question on Kernel density estimator to plot the two densities, Get Answer, Expert's Help, Kernel density estimator to plot the two densities Discussions

Write discussion on Kernel density estimator to plot the two densities
Your posts are moderated
Related Questions
What is independent monetary policy Advantages: First, in a freely-floating exchange rate, the exchange rate must move down or up to correct a payments imbalance. Second, monet

Question 1: Differentiate between income, price and cross elasticities of demand. How will the concept of price elasticity be useful to the owner of a supermarket who wan

Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Alba and Gavigan set up their site so families can choos

Explain the Economic functions of money - A unit of account In a monetary economy, all prices may be expressed in monetary units which everyone may relate to. Without money,

Q. Explain about Phillips curve ? The Phillips curveĀ  According to traditional Phillips curve, there is a negative and stable relationship between unemployment andwage in

Calculating interest rates on a yearly basis If maturity is different from one year, interest rate is generally recalculated to a corresponding one year rate. For instance con

#question.Q8. In 1961, Germany faced the dilemma of an external surplus and a booming economy. As a result, speculative capital flowed into Germany and the Germans felt obliged to

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, in

The figure below defines an economy's aggregate demand curve and its short-runand long-run aggregate supply curves (labelled AD, SRAS, and LRAS, respectively). practically,the econ

Why and how does free trade help the U.S. economy? How might free trade hurt the U.S. economy?