13.62 Another way to look at the functioning of the labor market is by tracking unemployment. To investigate the inequalities in the Australian labor market, we distinguish among unemployment in 25+-year-old adults, women youth, and men youth.

See the data file OECD Lab Force Australia for the relevant data.

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

b. Estimate a multiple regression models that explains the unemployment in 25+-year-old women and in the 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?