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pls answer quickly A researcher estimates a labour supply model using panel data on 532 males observed annually from 1979 to 1988. The model is

pls answer quickly

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A researcher estimates a labour supply model using panel data on 532 males observed annually from 1979 to 1988. The model is Ihrs, = lwage,,B+ 2, + v. (1) v. = a, +u; for i = 1,...,532 and t =1,...,10, and where lhrs,, and /wage,, are the natural logarithms of annual hours worked and hourly wages respectively; 1, are time effects; a, individual fixed effects and B the main parameter of interest. The model is estimated by Pooled OLS, Random Effect GLS, Fixed Effect OLS, and First Differenced OLS. The estimation results for B are displayed in Table 1, where "se" stands for standard error. Time dummies are included in all specifications. Table 1. Estimation Results. Pooled OLS RE GLS FE OLS FD OLS B 0.083 0.110 0.168 0.138 se 0.009 0.029 0.041 0.021 Cluster robust se 0.030 0.045 (f) Argue why cluster-robust standard errors need to be used for the Pooled and first differenced OLS estimators. What does the difference between the cluster-robust standard error and the basic standard errors for the Pooled OLS estimator indicate? [4 marks]

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