Reference no: EM132242185 , Length: 5
Assignment - Multiple Regression
Measuring and Interpreting Gender Discrimination in Wages Using Multivariate Regression Techniques
Purpose: The following assignment is designed to help you develop your skill in estimating and interpreting multivariate regression models using ordinary least squares. For this assignment you will be writing a mini-paper using the human capital theory to estimate gender discrimination in wages using CPS data for 1978. You will also learn how to interpret the coefficients of dummy variables.
Data: The data set (named CPS78) used in this assignment is a subsample of the more than 10,000 cases in the 1978 Current Population Survey. See descriptions of variables in the table below.
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Name
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Definition
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Lwage
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Natural Logarithm of hourly earnings in dollars
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Educ
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Years of School Completed
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Exper
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Potential Experience Estimated by Calculation EX = AGE - ED - 6
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Expersq
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EX -squared. Potential Experience squared
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Female
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If FE=1, respondent is female
If FE=0, respondent is male
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Nonwhite
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If NONWHITE=1 , respondent is non-white and non-Hispanic;
Else, NONWHITE=0.
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Union
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If UNION=1, respondent is a union member;
Else, UNION=0.
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Age
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Age in Years
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The basic (very simplified) human capital model that will be used in this assignment is:
Lwage = β0 + β1Educ + β2Exper + β3Female + β4Union + β5Nonwhite + e
Where the variables are as defined in the table above. Estimate this model and give a verbal interpretation including the tests of hypothesis (whether the results are significant or not).
Use the following Stata command for Descriptive Statistics and Regression
Descriptive Statistics
sum lwage educ exper // good for descriptive stats for interval/ratio variables tab1 female union nowhite // good for categorical variables - produces percentages
Regression
reg lwage educ exper i.female i.union i.nonwhite //Note the i. before categorical variables
1. Write a paper describing your results. You may write up to five pages (NO MORE), excluding tables, figures, and appendices. Clearly label and turn in your raw output (details below). You should write the paper in a style appropriate for publication.
2. Your paper should include the following.
(a) An introduction describing the process you want to examine. Provide some motivation for the analysis. You do need to have a brief review of the literature on the topic of gender discrimination in wages.
(b) A brief method and data section.
(c) Descriptive statistics and multiple regression analysis, plus any additional analyses needed, margins etc.
(d) A Discussion and Conclusion section. (e) (5 points) References use APA style (f) (10 points) Tables and figures in a separate section.
(g) (Appendix A - Primarily your log file showing commands and the analyses used in the paper).
3. Your paper should be formatted as follows, with the italicized word and your name in the upper right hand corner of the first page of each section:
(a) Paper: The body of the paper, including the introduction, methods section, analyses, conclusions and references.
(b) Tables: The tables and figures.
(c) Appendix A.
Attachment:- Assignment Files.rar