Whether asvabc appears to be subject to measurement error

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Reference no: EM131132401

It is possible that the ASVABC test score is a poor measure of the kind of ability relevant for earnings. Accordingly, perform an OLS regression of the logarithm of hourly earnings on years of schooling and the ASVABC score using your EAEF data set and an IV regression using SM, SF, SIBLINGS, and LIBRARY as instruments for ASVABC. Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.

Reference no: EM131132401

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