How would you control these person and time specific effects

Assignment Help Macroeconomics

Reference no: EM131444390

Question: Can the regression that you suggested in response to given problem be used to estimate the effect of gender on an individual's earnings? Can that regression be used to estimate the effect of the national unemployment rate on an individual's earnings? Explain.

Problem: A researcher is using a panel data set on n = 1000 workers over T- 10 years (from 2001 through 2010) that contains the workers' earnings, gen-der, education, and age. The researcher is interested in the effect of education on earnings. Give some examples of unobserved person-specific variables that are correlated with both education and earnings. Can you think of examples of time-specific variables that might be correlated with education and earnings? How would you control for these person-specific and time-specific effects in a panel data regression?

Reference no: EM131444390

Questions Cloud

The duration prediction and the actual market values : MLK Bank has an asset portfolio that consists of $100 million of 30-year, 10-percent-coupon, $1,000 bonds with annual coupon payments that sell at par. What will be the bonds’ new prices if market yields change immediately by ± 0.10 percent? What is ..

Compute the price of bonds based on semiannual analysis : Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 11 percent and the interest is paid semiannually. The yield to maturity on the binds is 14 percent annual interest. ..

How much do you have to save each month : You want to be a millionaire when you retire in 40 years. How much do you have to save each month if you can earn an annual return of 10.8 percent? How much do you have to save each month if you wait 25 years before you begin your deposits?

Explain the wto how does it work and who are the members : Explain the WTO, how does it work, who are the members. What does it govern, who does it govern, how? Is China a member of the WTO? Are they in full compliance?

How would you control these person and time specific effects : Can the regression that you suggested in response to given problem be used to estimate the effect of gender on an individual's earnings? Can that regression be used to estimate the effect of the national unemployment rate on an individual'..

Present one example of an hrm issue in the news media : Present one example of an HRM issue in the news or entertainment media (excerpts from movies or TV shows, or articles from newspapers or magazines) and explain how it illustrates a relevant topic with approximately 500 words.

How each of the four functions of management impacts : Identify the company's mission statement, vision statement, goals, objectives, and tactical plans. Explain how each of the four functions of management impacts the organization's goals and objectives.

Conduct a capacity analysis of the location and logistics : Develop a flowchart that analyzes the steps of the organization's business processes. Conduct a capacity analysis of the location(s) and logistics.

Which of the internal validity conditions are violated : Another researcher is interested in the same regression, but he makes an error when he enters the data into his regression program: He enters each observation twice, so he has 200 observations.

User Account

All Pages