Reference no: EM132914354

This problem asks you to work directly with Stata. Suppose you are a researcher interested in studying the labor market outcomes of recent college graduates. One public-use, suitable dataset for this purpose is the National Survey of College Graduates (NSCG). In order to answer the following questions, you will need to use the attached documentation to identify the variables of interest.

Question (a) Explore the survey using the codebook and survey description. Based on this, write down one scientific question (related to the topic mentioned above) which could be answered using the NSCG.

Question (b) Use the codebook provided with the database to identify the variables related to hours worked per week, weeks worked per year and year earnings. Notice that information about weeks worked can be derived using two variables.

Question (c) After handling invalid values properly, create a table showing the mean and standard devia- tion of the three variables described in part (a) for men and women separately.

Question (d) In order to see the distribution of hours worked per week, crate a histogram of this variable for men and women. Plot the density in the y-axis and use a bin width of 10 for the x-axis.

Question (e) Create a new variable lnhourwage defined as the (natural) logarithm of year earnings di- vided by total hours worked during the year. Produce a table showing the mean, standard deviation and percentiles 10th and 90th of this variable for men and women separately. Drop observations which yield a negative value of this variable.

Question (f) Use the interview questionnaire to identify the variable which indicates whether a respondent changed employer and/or job between 2013 and 2015, as well as the variables describing the reason of change in case the employer is different between these two years. What is the proportion of respondents who stayed with the same employer and job during this period?

Question (g) As a researcher, you are also interested in studying how the gender wage gap varies across major fields. Using the variable related to the first bachelor degree (nbamemg) and your variable lnhourwage create a table showing the mean hourly wage for women and men across different majors. Which is the one that presents the higher wage gap?

Question (h) Run a regression of hourly wages on education separately for men and women. How does the parameter of education differ across gender?

Question (i) Create a variable of potential experience ptlexper, defined as age-education-6. Run a re- gression of hourly wages on education, potential experience and potential experience squared separately for men and women. Interpret your results.