13.58 Another way to analyze the functioning of the labor market is by tracking unemployment. To investigate the inequalities in the Italian labor market, we distinguish among the unemployment statistics of 25+-year-old adults, women youth, and men youth. See the data file OECD Lab Force Italy for the relevant data.

a. Create a scatterplot demonstrating the development of unemployment in 25+ year olds, women youth, and men youth. Summarize these developments.

b. Estimate a multiple regression model that explains unemployment in women over 25 years of age and in men youth. Use the Durbin-Watson statistic to test for autocorrelation.

c. Add the lagged value of unemployment in women youth as a predictor to the regression model. Calculate the Durbin-Watson statistic. What model do you prefer?