2. You are interested in the effect of training courses on wages. You start with regressing In wages on the number of weeks individual i has been in training in the last 3 years. Dependent variable In wages (1) (2) (3) Coeff Coeff Coeff Constant 3.825 3.242 3.582 # Weeks of training 0.0015 0.0009 Education 0.102 0.082 (1) In model (1), interpret the coefficient on the number of weeks of training courses. How much are wages predicted to increase if a worker spent 24 weeks in training course over the past 3 years? (ii) You are worried that the estimate for the number of weeks in training on wages may be biased due to omitted variables, most importantly education. How does omitting education from regression (1) affect the estimate on weeks in training if education and weeks in training are positively correlated? What if education and training are negatively correlated? Which scenario do you consider more likely? (11i) By comparing specifications (1) and (3), and (2) and (3), deduce the nature of the correlation between training and education in this sample. Explain your