econometric Theory Tasks You want to study whether employers discriminate against minorities in their hiring decisions. You have a data set of people who sent job applications to firms. The dataset contains information on the following: interview: whether a person was invited for an interview (i.e. a binary indicator that equals one if a person applied and was invited for an interview and zero otherwise) minority: a person's minority status: a binary indicator that equals one if the person is from an ethnic minority and zero otherwise yrs_educ: a person's years of education (a continuous variable) female: whether a person is female or not (also a binary indicator)

question:

3. All you know about the data is that is was collected from a job board (i.e. a website where jobs are advertised). Discuss the random sampling assumption and the conditional independence assumption (in the lecture it was E(u|X) = 0). Are these assumptions fulfilled in this case (explain why or why not)? Explain intuitively the likely consequences of these assumptions (not) being fulfilled for estimating the effect of interest.