Kernel density estimator to plot the two densities, Macroeconomics

Assignment Help:

The data is posted on Blackboard. Download the data lfs4.dta on your personal computer. This data is from the Labour Force Survey 2003. In STATA, add enough memory to open the data set (Set memory 300) and open the data file. Refer to the Record Layout for reference with the variable names. Note that all your results should be weighted to account for the stratified sampling frame of the LFS. Include a copy of the do file with your output.

a. What is the raw average gender log hourly wage gap? How could you get this number in a regression framework? Use descriptive commands such as summarize

b. What was the union density (% workers covered by union)? Is the dispersion of logwages much larger in the nonunion sector than in the union sector? Use the kernel density estimator to plot the two densities.

kdensity lwage [weight=fweight] if unioncv==1, gauss width(0.05)

Is there a min.wage effect in the non-union sector (The min. wage ranges between $7.00 and $8.00?)

c. Is the dispersion of logwages much larger in the public sector than in the private sector? (cowmain = class of worker)

d. Is the dispersion of logwages much larger among females than men?

In the LFS educational attainment is available in 6 categories and age in 12 categories. Generate categorical variable dummies for age and education (for instance, use tab educ_90, gen(edd)). Run a regression of wages on education, age and gender and save the estimated coefficients for education in a single vector (Tip: after reg, gen betaed=0; replace betaed=_b[edd2] id edd2==1; ...replace betaed=_b[edd7] id edd7==1 ) Save your data.

a. Is the male advantage reduced when one controls for these human capital variables? Explain. Are there other controls in your data set that can help reduce the gender differential?

b. Construct a years of schooling variable. Specify how you assign numerical values to each category. Construct an experience variable (gen exp= age-years of education-6) and its square. Substitute the level of schooling dummies with the years of education c. Has the age-earnings profile of high school educated workers the same shape as for university educated workers? Plot these in the same graph, what is the cross over age?


Related Discussions:- Kernel density estimator to plot the two densities

Explain the multiplier effect with example, Explain the multiplier effect w...

Explain the multiplier effect with example Deposits and loans in banks give rise to an important multiplier effect. We use a simple example to illustrate this effect. Consider

Average price-earnings ratio, In a survey of 155 publicly-traded companies,...

In a survey of 155 publicly-traded companies, the average price-earnings ratio was 18.3 with a standard deviation of 7.6. When testing the hypothesis (at the 5% level of significan

International trade, How can achieve mutual gain from international trade?

How can achieve mutual gain from international trade?

IS LM curve, example on the calculation of IS LM Curve?

example on the calculation of IS LM Curve?

Current event opportunity, Give an example of a current event opportunity c...

Give an example of a current event opportunity cost that includes graphs

Calculate the production with antitrust laws, The following Table summarize...

The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):

Graph, Maximum profits will occur at the output level where is the greatest...

Maximum profits will occur at the output level where is the greatest vertical distance between Total Revenue(TR) AND Total Cost(TC. uSE THE TOTAL REVENUE-TOTAL COST CURVES TO Illus

Bop on capital account, BOP on Capital Account: BOP on Capital Account...

BOP on Capital Account: BOP on Capital Account  shows only export and import of capital and  the difference between  the  two represents a country's capital account balance. C

Project to build a factory, Suppose there are two investors. One has a proj...

Suppose there are two investors. One has a project to build a factory; the other has a project to visit casino and gamble on roulette. Which investor has a greater incentive to iss

Overall effect of a change in real wages, Q. Overall effect of a change in ...

Q. Overall effect of a change in real wages? The supply of labor The supply of labour L S is assumed to be positively related to the real wage W/P

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd