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

Econometric model for economic services, what model should i use for econom...

what model should i use for economic services and how to run spss for the same?

Modelling and multicollinearity, write a term paper on modelling and multic...

write a term paper on modelling and multicollinearity

Maximum likelihood procedure, A brief summary of the procedure of maximum l...

A brief summary of the procedure of maximum likelihood.

Homoscedasticity and heteroscedasticity, Probelm: (a) Differentiate bet...

Probelm: (a) Differentiate between homoscedasticity and heteroscedasticity. (b) Outline the reasons why the variances of disturbance term may vary. (c) Given the 3 observ

Calculate the elasticity of the premium, You are a property insurer and one...

You are a property insurer and one of your potential clients, whose current wealth is $450,000, wants to insure her $250,000 house.  The chances of the house burning down in any gi

Hetroscedasticity, hypothetical data on consumption expenditure ($) and inc...

hypothetical data on consumption expenditure ($) and income ($) is given in the table x Y 80 55 100 65 85 70 110 80 120 79 115 84

Elasticity, compare the price elasticity of demand on two parallel demand c...

compare the price elasticity of demand on two parallel demand curves for a given price and for a given quantity

David the most interest, David has  £5000  that  he wishes  to  save  for  ...

David has  £5000  that  he wishes  to  save  for  six  years. Bank A  offers  him  an interest  rate  of  4%  per  annum  compounded  monthly.  Bank  B  offers  him  an interest ra

Household and the environment , Choose Y and X variables to model on the Ho...

Choose Y and X variables to model on the Household and the Environment Survey 2006. Using Ox software to write a program to do estimation, and then write a report based on the an

Fundamental theorems of welfare economics, 1. What are the two roles that p...

1. What are the two roles that prices play in a competitive economy? How are these two roles related to the Fundamental Theorems of Welfare Economics? 2. The Undercover Economis

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