Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

schooling earnings 0 12.5572 1 12.37059 2 12.28345 3 12.53942 4 13.60204 5 13.69685 6 14.46392 7 15.48792 8 16.58223 9 17.75331 10 18.31583 11

schooling earnings
0 12.5572
1 12.37059
2 12.28345
3 12.53942
4 13.60204
5 13.69685
6 14.46392
7 15.48792
8 16.58223
9 17.75331
10 18.31583
11 18.93581
12 20.69255
13 22.40492
14 23.55711
15 25.12731
16 30.9133
17 30.25502

The file "SchoolEarnings.csv" contains data on earnings and schooling.

The data is from a 1991 study by Angrist and Krueger entitled "Does Compulsory School Attendance Affect Schooling and Earnings?"published in the Quarterly Journal of Economics.

Angrist and Krueger obtained their data from the Integrated Public Use Microdata Series from the 1980 U.S. Census.

The study specifically focused on men born between 1930 and 1939, so they were 41-50 years old at the time of data collection.

Each row corresponds to a large group of men with the same level of schooling.

The variable "schooling" indicates the years of schooling for each group. 12 corresponds with high school completion, and 16 corresponds with college completion.

The variable "earnings" indicates the average annual earnings (in 1980 U.S. dollars) for the men in each group.

Question- Run a regression with earnings as the dependent variable and schooling as the sole independent variable.

What is the coefficient on years of schooling? Interpret the coefficient, or in other words, explain what it means.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Engineering Mathematics

Authors: Erwin Kreyszig

10th edition

470458364, 470458365, 978-0470458365

More Books

Students also viewed these Mathematics questions