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Suppose that someone wants to estimate the impact of schooling on the wage level. For that purpose he regress wage on schooling. However, econometrician warned

Suppose that someone wants to estimate the impact of schooling on the wage level. For that purpose he regress wage on schooling. However, econometrician warned him that your estimates for the coecient of the schooling might be biased since he did not include the IQ level as another variable in his model. Discuss whether the econometrician is correct in his warning?

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