Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Answer as succinctly as possible while still fully answering the problem. Keep in mind that a simple “yes” or “no” answer is never sufficient – you are always expected to describe your reasoning

problem 1

Type the following command in Stata to load the MROZ dataset:

use http://fmwww.bc.edu/ec-p/data/wooldridge/MROZ, clear

This dataset contains information on married working women. Use the following command to keep only those women who are in the labor force:

keep if inlf==1

(a) Run an OLS regression of log wage (lwage) on years of schooling (educ). What are the returns to education? In order to address the concern that education may be correlated with unobserved factors such as ability, you would like to use mother’s years of schooling (motheduc) as an instrument for education.

(b) Theoretically speaking, is mother’s education a good instrument for education? describe your reasoning.

(c) Empirically, test whether mother’s education is a relevant instrument?

(d) Reestimate the model from part (a), but this time implement 2SLS using mother’s education as your instrument for education. Compare the economic and statistical significance of your estimated returns to education with your results from part (a).

Are the results similar?

(e) Which are higher – your standard errors in part (a) or your standard errors in part (d)? Is this as you would expect?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91899

Have any Question? 


Related Questions in Microeconomics

Write a paper 2 - 4 pages based upon the following

Write a paper (2 - 4 pages) based upon the following activity: During an evening of television viewing, write down all of the advertisements you see (minimally use 10). 1. Which ones did you like? Which ones did you disl ...

Httpswwwyoutubecomwatchvhblevnwyg8what was the promise of

https://www.youtube.com/watch?v=Hb_leVNwyg8 What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

Assignmentdfds are process diagrams that emphasize the data

Assignment DFDs are process diagrams that emphasize the data consumed, produced, and stored by processes under discussion. Complex processes are decomposed into their constituent elements to reveal the most elemental sub ...

Assignmentyou are hired at a manufacturing plant in texas

Assignment You are hired at a manufacturing plant in Texas as an assistant plant manager. You have over ten years of experience in manufacturing and have a Bachelors in Business and a Master in Business Administration. T ...

Problemdescribe some interaction your company has with

Problem Describe some interaction your company has with another entity (firms producing complementary or substitute products, upstream suppliers, or down-stream customers), or between internal divisions within your firm ...

Assignment global business today - the hofstede studyrefer

Assignment: Global Business Today - The Hofstede Study Refer to Hofstede model in Chapter 4 of the textbook and the Global Business Today Interaction located below, and complete this assignment. Note: You must have a Fla ...

Answer these two questionthese is 2 econ question you need

Answer these two question These is 2 econ question, you need answer these by reading the article . you need give me the answer in 1 hour 1. Explain how settled agriculture led to civilization (meaning economic specializa ...

What is the difference between a cost and an expense when

What is the difference between a cost and an expense? When does a cost become an expense? Do all costs become expenses? Explain.

Prepare 100 words summary for class discussioncreative

Prepare 100 words summary for class discussion Creative Destruction by W. Michael Cox and Richard Alm Joseph Schumpeter (1883-1950) coined the seemingly paradoxical term "creative destruction," and generations of economi ...

Digital media power point presentationdigital media has

Digital Media Power point presentation Digital media has changed the ways ideas, information, and arguments in society are communicated both locally and globally. Individuals and organizations frequently use digital medi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate