Assignment 10

Assignment 10 - 7.48 0.12127 0.01764 6.87-0.00723 0.00630...

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ECO 544 Assignment 10 1. Variables Coefficient Standard Errors t-statistics 1.61014 0.10450 15.41 1.41988 0.09526 14.90 1.44235 0.10588 13.62 1.44826 0.09563 15.14 0.08656 0.00615 14.06 -0.00896 0.00640 -1.40 The coefficient of Education, , can be interpreted as follows: if the years of education increase by one year, the increasing rate of the wage is 8.66%. Since this variable is statistically significant (t-value: 14.06), the effect of education on increasing rate of earnings exists after controlling for regional difference and unemployment rate of the residential place. 2. Variables Coefficient Standard Errors t-statistics 1.88921 0.11053 17.09 1.69939 0.10216 16.63 1.72086 0.11177 15.40 1.74414 0.10346 16.86 0.05610 0.00750
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Unformatted text preview: 7.48 0.12127 0.01764 6.87-0.00723 0.00630 -1.15 The is still significant, which means that even if we control for individuals ability, the years of education affects the increasing rate of the wage. That is, the increasing rate of the wage depends on the years of education regardless of regional difference, individuals ability, and unemployment rate of the residential place. 3. Even after controlling for individuals ability in the second regression, we can see positive and significant estimate of Years of Education, suggesting that labor market signaling effect on increasing rate of earnings exists although the effect is reduced after controlling for individuals ability....
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This note was uploaded on 02/24/2012 for the course ECON 544 taught by Professor Li during the Fall '10 term at SUNY Buffalo.

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