Question
1.A researcher estimated a very simply regression using Canadian data: Umemp = 0.02 - 1.7 * immig + e Where unemployment is the change from
1.A researcher estimated a very simply regression using Canadian data:
Umemp = 0.02 - 1.7 * immig + e
Where unemployment is the change from one year to the next in the unemployment rate, and immig is the change in logarithm of the number of immigrants arriving in Canada. Which statement is correct about the estimatedcoefficient of immif variable? Choose the best option.
a.Immigration causes unemployment
b.The immig variable could be endogenous. In that case, the coefficient is biased
c.Immigrants and native born Canadians are complementary
d.It shows that during periods of high economic growth there are more immigrants arriving in Canada.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started