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6. (Empirical) Use Card's data set. Estimate the model covered in class by OLS and 2SLS but replace education by the following dummy D{0,1} where

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6. (Empirical) Use Card's data set. Estimate the model covered in class by OLS and 2SLS but replace education by the following dummy D{0,1} where D=1 if education >12. (You need the following packages for this question: ivreg, sandwich, Imtest, nIWaldTest.) i) What are the estimates of the coefficient of D by OLS and 2SLS? What are their robust standard errors? Are they significant at 5% level? ii) For 2SLS, test the the joint hypothesis H0:education=0 and experience+12experience2=0 by command "nIWaldtest". You need to obtain the robust covariance matrix first by vcovHC. 6. (Empirical) Use Card's data set. Estimate the model covered in class by OLS and 2SLS but replace education by the following dummy D{0,1} where D=1 if education >12. (You need the following packages for this question: ivreg, sandwich, Imtest, nIWaldTest.) i) What are the estimates of the coefficient of D by OLS and 2SLS? What are their robust standard errors? Are they significant at 5% level? ii) For 2SLS, test the the joint hypothesis H0:education=0 and experience+12experience2=0 by command "nIWaldtest". You need to obtain the robust covariance matrix first by vcovHC

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