Overview
Descriptions:
In each of the two exercises, start your report by stating the objective of the empirical exercise and also describe the data (e.g. number of observations, describe the variables, provide means of the variables, etc.). Also provide a conclusion for each report stating what was learned.
Assignment Instructions:
- First exercise
Download the files:
- gender data file (cps08) Download gender data file (cps08)
- do file for gender analysisDownload do file for gender analysis
Execute the do file and report the output in a word document. Then analyze your findings; that is state whether the findings provide evidence that there is gender discrimination. Analyze the results from each model and indicate which model appears to provide the best results. What else could be added to improve the model?
2. Second exercise
In this exercise, analyze the causal relationship between tenure and earnings using a National Longitudinal Survey Data set Lab1_data.dta Download Lab1_data.dta, collected on 5159 individuals between 1968-1988 in the U.S.
The data set contains a number of variables; you can read the variable descriptions from the variable labels. Using this data set, you are required to estimate an earnings function using different specifications (both linear and non-linear). Also, identify the relevant control variables using your own intuition and judgment, earlier studies, or economic theory. Begin by estimating linear, and log-linear specifications on the pooled data (ignoring the panel nature of the data). Then estimate a fixed and random effects model, on the data set and justify your choice based on the Hausman test.
Report your regression results in MS-word table(s). You are also expected to interpret the parameter estimates of key variables and comment on your empirical models and findings in general in a maximum of five pages (double-spaced). Also, attach your do-file to your lab report.
Show the table of results and present conclusions based on your findings.
- Module 4_ Gender data cps08.dtaDownload Module 4_ Gender data cps08.dta
- Module 4_lab1 data.dta