Reference no: EM131843221

Assignment

For this exercise, you will use the data set "cps13_construction.dta" available on Blackboard in the folder "Topic2 Stata Material". This data set contains the records of 4,577 construction workers. Specifically, for each individual you observe gender (male = 1 for males: male = 0 for females), education (highest grade completed), and hourly wage.

Using Stata, answer the following questions:

1. What is the proportion of male workers in the data set?

2. What is the average level of education in the sample? What is the mode of education in the sample?

3. Is the average level of education different between male and female workers? Can you tell whether the observed difference is statistically significant? (Hint: the Stata command hest may be useful for this purpose. It is a great exercise if you try to reproduce the results of the command nest manually using the command summarize)

4. Are male workers better paid on average?

5. Run a regression of hourly wage on education. How much of the sample variation in hourly wage is explained by education? What assumption do you need to interpret the relationship between hourly wage and education as casual? Would such an assumption hold in practice? Explain.

6. Run the same regression as in part 5 above for male and female workers separately. Interpret the results you obtain.

Attachment:- cps13-construction--1-.rar