Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements regarding the issue of ability bias is false? '1'- 3, The estimated coefficient may understate the true causal effect, if
Which of the following statements regarding the issue of "ability bias" is false? '1'- \"3, The estimated coefficient may understate the true causal effect, if more highly ii educated individuals would have earned more than less educated individuals even with the same amount of schooling as the less educated. ("3, The problem of "ability bias" can be addressed by "natural experiments" , technology. if "3, The estimated coefficient may overstate the true causal effect, if more highly ii educated individuals would have earned more than less educated individuals even with the same amount of schooling as the less educated. ,i" "I, In the earning function, In Y = a + bS + e, where log wages depend only on the id level of schooling, 5, and unobserved talent, e. The OLS estimate of the return to schooling b is biased, because unobserved talent, e, is correlated with schooling. ,i" \"3' Recent empirical studies have found that the problem of "ability bias\" is exaggerated
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started