User Account

All Pages

exam prep, Econometrics

Assignment Help:
Females, it is said, make 70 cents to the dollar in the United States. To investigate this
phenomenon, you collect data on weekly earnings from 1,744 individuals, 850 females
and 894 males. Next, you calculate their average weekly earnings and find that the
females in your sample earned $346.98, while the males made $517.70.

(a) Calculate the female earnings in percent of the male earnings. How would you test whether or not this difference is statistically significant?

(b) A peer suggests that this is consistent with the idea that there is discrimination against females in the labor market. What is your response?

(c) You recall from your textbook that additional years of experience are supposed to result in higher earnings. You reason that this is because experience is related to “on the job training.” One frequently used measure for (potential) experience is “Age-Education-6.” Explain the underlying rationale. Assuming, heroically, that education is constant across the 1,744 individuals, you consider regressing earnings on age and a binary variable for gender. You estimate two specifications initially:

= 323.70 + 5.15 Age – 169.78 Female, =0.13
(21.18) (0.55) (13.06)

= 5.44 + 0.015 Age – 0.421 Female, =0.17
(0.08) (0.002) (0.036)

where Earn are weekly earnings in dollars, Age is measured in years, and Female is a binary variable, which takes on the value of one if the individual is a female and is zero otherwise. Interpret each regression carefully. For a given age, how much less do females earn on average?

(d) Can you choose which is the best specification based on the R2 information? Which test would you perform to decide between the two specifications? Describe the test in details.

(e) Your peer points out to you that age-earning profiles typically take on an inverted U-shape. To test this idea, you add the square of age to your log-linear regression.

= 3.04 + 0.147 Age – 0.421 Female – 0.0016 ,
(0.18) (0.009) (0.033) (0.0001)
=0.28

Interpret the results again. Are there strong reasons to assume that this specification is superior to the previous one? Why is the increase of the Age coefficient so large relative to its value in (c)?

Related Discussions:- exam prep

Multicollinearity, if there is multicollinearity so why we can not estimate...

if there is multicollinearity so why we can not estimate the value of parameters?

Regression, You have collected data for 104 countries to address the diffic...

You have collected data for 104 countries to address the difficult questions of the determinants for differences in the standard of living among the countries of the world. You rec

Level of interest rate, You have won a contest and are allowed to choose be...

You have won a contest and are allowed to choose between two prizes. One option is to receive $200 now and another $200 a year from now. The second option is $150 now and $255 a

#simultaneously, #question.Suppose that you have 150 observations on produc...

#question.Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7 +

What is the problem with this regression, (a) Describe all tests that you n...

(a) Describe all tests that you need to undertake prior to working with time series data. (b) Consider the following regression result: Standard Errors: (6.7525)

I need a help with my assignment, My econometrics assignment is due for mon...

My econometrics assignment is due for monday, August 18th. I''m running out of time and need a help to meet the deadline. I need answers for 4 problems from the basic econometrics.

Econometric model, Provide a clear statement of the research topic and the ...

Provide a clear statement of the research topic and the underlying relationship that you are modeling. Identify the dependent variable and the independent variables (minimum of 3 i

Draw one graph of atc and avc, Costs.  a.  Complete the following table.  ...

Costs.  a.  Complete the following table.  Total Product (Q) Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost

Need to build intuition about it., can you please help me build intution ab...

can you please help me build intution about it

Primal and dual lp problems, As in the model solved initially, the followin...

As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd