13.61 The OECD keeps track of the labor market developments of its member states. Its topics of interest include not only the total volume of the labor force but also its composition by age and gender.

There are marked differences among the member states in this respect, although the Australian labor force data demonstrates a relative balance. See the data file OECD Lab Force Australia for the relevant statistics.

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

b. Estimate a multiple regression models that explains the youth labor market participation of 25+-year-old women and that of the men youth. Use the Durbin-Watson statistic to test for autocorrelation.

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