Quantile regression coefficients, Econometrics

Assignment Help:

Consider the study of the effect of public-sponsored training programs. As argued in public programs of training and employment are designed to improve participant's productive skills, which in turn would affect their earnings and dependency on social welfare benefits.

We use the Job Training Partnership Act (JTPA), a public training program that has been extensively studied in the literature. For example, see The JTPA was a large publicly-funded training program in the United States that began funding in October 1983 and continued until late 1990's. We focus on the Title II subprogram, which was offered only to individuals with \barriers to employment" (long-term use of welfare, being a high-school drop-out, 15 or more recent weeks of unemployment, limited English proficiency, phsysical or mental disability, reading proficiency below 7th grade level or an arrest record). Individuals in the randomly assigned JTPA treatment group were offered training, while those in the control group were excluded for a period of 18 months.

Our interest lies in measuring the effect of training on participants' future earnings.

We use the database in ? that contains information about adult male and female JTPA participants and non-participants.

It has the following variables:

_ earnings: 30 months accumulated earnings

_ jtpa offer: JTPA offer: dummy variable for individuals that recived a JTPA offer;

_ jtpa training: JTPA training: dummy variable for individuals that took JTPA training;

_ sex: male dummy variable;

_ hsorged: dummy variable for individuals with completed high school or GSE;

_ black: race dummy variable;

_ hispanic: dummy variable for hispanic;

_ married: dummy variable for married individuals;

_ wkless13: dummy variable for individuals working less than 13 weeks in the past year;

_ age2225,age2629,age3035,age3644 and age4554: age range indicator variables.

Question 1.a The government is interested in whether JTPA training had an effect on future earnings after controlling for the effect of age, marital status, gender, race and education. Using OLS estimate this effect and comment on its sign, magnitude and statistical significance. Repeat the analysis for those with positive earnings only. Are there differences between these two estimations? Why? Also compute the same estimates in log earnings and comment.

Question 1.b The government is interested in knowing if training has a different effect on men than in women. Can you test for that using the first OLS model in

Q 1.a (in levels, including 0 earnings, controlling for covariates)?

Question 1.c Using the first model in Q 1.a., analyze if there are differences across the effect of training on wages on different quintiles of the distribution.

Comment on its differences using quantile regression models. Present a graph for

f0:1; 0:2; 0:3; 0:4; 0:5; 0:6; 0:7; 0:8; 0:9g containing the quantile regression coefficients of the effect of training on wages, together with its 95% con_dence interval.

Question 1.d Provide an elaborated argument to justify that the estimators of the effect of training in Q 1.a may be upward biased.

Question 1.e Use an instrumental variables strategy to find a consistent estimator of the effect of training on wages. You should argue that jtpa offer serves as a good instrument for jtpa training. Explain very carefully.


Related Discussions:- Quantile regression coefficients

E-views, The following table gives data on the Consumer Price Index (CPI) a...

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9

Explain the concept of cointegration, Problem 1: (a) Using examples exp...

Problem 1: (a) Using examples explain the concept of cointegration. (b) Explain the term ‘stationarity' and its importance. (c) Differentiate between stochastic and determinist

Determine the amount of the money, You are gambling. There is a white urn i...

You are gambling. There is a white urn in front of you, which contains a total of 100 black and white balls. You are blindfolded, get to pick one ball randomly, and see which color

Question about service, do you write assignment or just help write assignme...

do you write assignment or just help write assignments

find the weighted average cost of capital , PrivateJets (PJ) is considerin...

PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity

Calculate the percentage and test the hypothesis, Consider an equation to e...

Consider an equation to explain salaries of CEOs in terms of annual firm sales, return on equity (ROE, in percent form), and return on the firm's stock (ROS, in percent form): L

Profit Electron, Calculate the incremental profit Electron Control would ea...

Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.

Quantile regression coefficients, Consider the study of the effect of publi...

Consider the study of the effect of public-sponsored training programs. As argued in public programs of training and employment are designed to improve participant's productive ski

Production, Factor that affect the volume of production

Factor that affect the volume of production

The Myth of Public Goods by Mark Davis (2010); the J, Ask questia) Summariz...

Ask questia) Summarize the basic tenets of the arguments in thiscase b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer with detailed explanati

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