Assignment 4

Assignment 4 - have had one of each sex for their first two...

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Willy Lin Econometrics Assignment 4 2a. Yes, from the regression results we can conclude that women with two or more children work an average of 5.38 weeks less than women with two children. b. The model assumes that women with two kids and women with more than two kids are the same type of worker, excluding other external influences. For instance, it makes intuitive sense that women with more children are people who are likelier to work less due to taking care of their children or personal preference. Therefore, the OLS model will overestimate the average weeks that a mom with two kids will work, instead the model needs to account for the reasons a woman with more than two kids might work less to balance the estimator. c.
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The results show that couples who have had the same sex for their first two children are 6.75% likelier to have a third child than couple who
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Unformatted text preview: have had one of each sex for their first two children. Since the t-statistic is 35.17, it is significant. d. The reason samesex is a valid instrument is because it is independent from the endogenous variable Weeksworked , but correlated with the variable Morekids . e. Samesex is not a weak instrument because it is a significant statistic that correlates with Morekids . f. Couples who have had the same sex for their first two children are likelier to work an average of 6.31 weeks less than couples who have had one of each sex for their first two children. g. The results are not important because having the same sex for your first two children is a completely random process and therefore samesex is independent from agem1, black, hispan, and otherace....
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Assignment 4 - have had one of each sex for their first two...

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