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

Ask an Expert

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

Write your message here..

Related Questions

#title., it has been argued that economic development of developing countri... it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run

Causes and consequences of inflation for an economy, Question 1: Discus... Question 1: Discuss why living standards are higher in some countries than others. Question 2: (a) How is inflation measured? (b) What are the causes and consequence

A spiral approach and a waterfall approach, What is the difference in chang... What is the difference in changing the scope between a spiral approach and a waterfall approach? Ans) The scope of needs changes in Waterfall model is less than that in Spiral M

Define the fisher equation, Define the Fisher equation Fisher equation ... Define the Fisher equation Fisher equation is: Money supply (stock of money) x velocity of circulation of money = price level x total transactions in the economy or     MV =

Unions, Are unions “harmful monopolies” or "necessary?" compare and contras... Are unions “harmful monopolies” or "necessary?" compare and contrast the schools of thought that subscribe and their point of views?

Determine price level from the quantity theory of money, Q. Determine price... Q. Determine price level from the quantity theory of money? The price level The price level is determined from the quantity theory of money:  P = (M.V)/Y

Internal market forces, what are some internal market forces and how is the... what are some internal market forces and how is the outcome of output, jobs, prices, growth, and international balance

Relate overnight interest rates with interest rates, Relate overnight inte... Relate overnight interest rates with interest rates By controlling overnight interest rates, the central bank will affect the interest rates with longer maturity. The reason f

Money banking and finance, The analysis of the speculative demand for money... The analysis of the speculative demand for money reveals the importance of the level of wealth. Explain this assertion in detail

National product and domestic product, National Product and Domestic Produc... National Product and Domestic Product  A modern economy produces literally thousands of different goods and services. Some of these goods and services such as rice, wheat, shir