Reference no: EM131263231
1. 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? Give two approaches.
(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, R2=0.13, SER=274.75
(21.18) (0.55) (13.06)
= 5.44 + 0.015 × Age - 0.421 × Female, R2=0.17, SER=0.75
(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? Should you choose the second specification on grounds of the higher regression R2?
(d) 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 Age2,
(0.18) (0.009) (0.033) (0.0001)
R2 = 0.28, SER = 0.68
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)?
(e) What other factors may play a role in earnings determination?
|
Schumpeter creative destruction
: Why are less developed countries less likely to allow Schumpeter's "creative destruction" to occur as compared to the developed economies?
|
|
Describe specific quantitative methods and tools
: Describe specific quantitative methods and tools that could be used within your discipline to gather data. Include your rationale. Evaluate their effectiveness with respect to certain areas within your discipline.
|
|
Use theorem to obtain the characteristic function
: Use Theorem to obtain the characteristic function of a normal random variable with mean µ and variance σ2 from that of a standard normal random variable.
|
|
Construct a scatter diagram of the data points
: Consider the following data values of variables x and y. Construct a scatter diagram of the data points and plot the least squares regression line on it. Find the least squares regression line.
|
|
Discrimination against females in the labor market
: A peer suggests that this is consistent with the idea that there is discrimination against females in the labor market. What is your response?
|
|
How would you define an erp system
: Imagine that you need to conduct an in-depth assessment of an ERP implementation to identify what went well and what did not go so well. Prepare a list of 10 questions that would help you gather this information. Identify the key people (by busine..
|
|
Would you recommend the asu approach to other universities
: Do you suspect that there might have been serious problems with the Student Information System portion of this project as well? Why do you think there seems to be no documentation of problems in this area?
|
|
Scientists and policymakers and what principles society
: How economists are both scientists and policymakers and what principles society uses to allocate its scarce resources Using the circular flow model, explain the flow of money and goods in an economy.
|
|
Explain specific experimentation and observational methods
: Describe specific experimentation and observational methods that could be used within your discipline to gather data. Include your rationale. Evaluate their effectiveness with respect to certain areas within your discipline.
|