hw22008 david Ifeanyi-Nwanze

# hw22008 david Ifeanyi-Nwanze - EC 420, Spring 2008 David...

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EC 420, Spring 2008 David Ifeanyi-Nwanze A36520022 Problem Set 2 - Due February 7 NOTE : For questions using Stata, please type your answers into a word processing document (using MS Word or something similar). Insert the relevant part of your Stata log file into your document, and clearly explain how your Stata output answers the question. 1. For the NLSY sample, calculate the average logarithm of wages for two different groups – those who attended some college ( school >12) and those who never attended college ( school <=12). Hint: first generate the log wage variable by typing “ gen lwage= log(wage ) ” and generate a variable that’s equal to one if the person went to college and zero otherwise (for example, “ gen college = (school>12)” ). (2 points) . gen lwage= log(wage ) . gen college =(school>12) . sum lwage if college==0 Variable | Obs Mean Std. Dev. Min Max -------------+-------------------------------------------------------- lwage | 2992 1.684877 .6517538 -4.908532 6.786715 . sum lwage if college==1 Variable | Obs Mean Std. Dev. Min Max -------------+-------------------------------------------------------- lwage | 2008 2.011673 .6765078 -4.908532 6.13439 2. Test the hypothesis that the population mean of lwage is equal for those who never went to college and those who did go to college. Hint: the proper Stata command for testing whether the mean of var1 varies by the value of var2 is “ ttest var1, by(var2) ” (2 points) . ttest lwage, by(college)

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## hw22008 david Ifeanyi-Nwanze - EC 420, Spring 2008 David...

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