Use data for the most recent year available from the U$.$S$.$ Bureau of Labor Statistics $($BLS$)$ to

answer the questions below:

$($a$)$ The BLS defines adult employment status as being either employed, unemployed, or not

in the labor force. Tabulate the distribution of employment status conditional on sex and

college graduation status for adults in the labor force.

$($b$)$ Prove the law of iterated expectations by showing that the employment rate conditional on

sex alone is a weighted average of the conditional expectation function $($CEF$)$ tabulated in

$($a$)$ above. What are the weights?

$($c$)$ Plot the CEF of annual earnings given age, separately for men and women. Smooth your

plot by grouping age into $5-$year intervals.
 

Male Female Employment Status No college With college No college With college Total Male Total Female degree degree degree degree No college degree Total With college Total degree 448,243 371,822 820,065 351,465 403,890 755,355 799,708 775,712 1,575,420 Employed 16.0% 13.2% 29.2% 12.5% 14.4% 26.9% 28.5% 27.6% 56.1% 25,001 9,337 34,338 20,571 10,117 30,688 45,572 19,454 65,026 Unemployed 0.9% 0.3% 1.2% 368,266 145,098 513,364 0.7% 448,300 0.4% 207,280 1.1% 1.6% 0.7% 655,580 NILF 13.1% 841,510 5.2% 526,257 18.3% 1,367,767 16.0% 820,336 7.4% 621,287 Total 30.0% 18.7% 48.7% 29.2% 22.1% 23.3% 1,441,623 51.3% 816,566 29.1% 1,661,846 59.2% 352,378 2.3% 1,168,944 12.5% 1,147,544 40.8% 41.6% 2,809,390 100.0%