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

What is the value of the swap in terms of both bonds and fra, Suppose that ...

Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of $100 million in which 6% is received and six-month LIBOR is pa

Labour market, use a graph of the classical labour market to illustrate the...

use a graph of the classical labour market to illustrate the effects of a real wage existing in the market that is lower thhan the equilibrium real wage

Joke among economists, There is a joke among economists that children are a...

There is a joke among economists that children are an "inferior good." In many countries there appears to be a negative relationship between income and the number children in a hou

Making lease payments that are equivalent to annual payments, A company can...

A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000

What do learn by study of the supply curve concepts, What do learn by study...

What do learn by study the supply curve concepts? a. The relationship in between quantity of inputs and output b. Why production is frequently subject to reducing  returns

Demand for green and chai tea, Given the data in the table below, provide a...

Given the data in the table below, provide an estimate of the arc price elasticity of demand for green and chai tea. Chai tea Price $/lb. 10.4, 10.5 Chai tea Quantity mil lbs. 75

Taxation, with reference to incidence of taxation, explain with the help of...

with reference to incidence of taxation, explain with the help of a diagrams, who bears the incidence of taxation when the demand for a commodity is (i)perfectly inelastic (ii) uni

Keynes liquidity Preference theory stipulates that m, #questionKeynes liqui...

#questionKeynes liquidity Preference theory stipulates that money demand is negatively related to current income and positively related to interest rate..

IS and LM model, An economy shows the following features C=50+0.9(Y-T) T=1...

An economy shows the following features C=50+0.9(Y-T) T=100 I=100-5i G=100 L=0.2Y-10i M/P=100 X=20 M=10+0.1Y a)Obtain the IS and LM for this economy b)Find out the equilibrium inc

Rent control agency of new york city, The rent control agency of New York C...

The rent control agency of New York City has found that market demand is QD=100-5P With quantity measured in tens of though sands of apartments and price, the monthly rental rate,

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