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01 STAT introduction-IC Q1

01 STAT introduction-IC Q1 - Being fluent increases wages...

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INTRODUCTION Dr. V.R. Bencivenga Economic Statistics Economics 329 INTRODUCTION: INDEX CARD QUESTION 1 English skills raise wages for some, not all, in India by Mehtabul Azam, Aimee Chin , and Nishith Prakash 26 May 2010 http://www.voxeu.org/index.php?q=node/5099 (ARTICLE IS POSTED ON BLACKBOARD) Figure 2 in this article suggests that if we compare wages of workers who know even a little English to wages of those who know no English, knowing even a little English raises wages from 10 to 23 Rs/hour for men, and from 6 to 19 Rs/hour for women.
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Unformatted text preview: Being fluent increases wages even more! Does this mean that if we take a randomly-chosen person who knows no English, and teach them a little English, this person can expect their wages to rise by 123% (men) or over 300% (women)? If not, why not? What’s methodologically wrong with comparing average wages across groups with different English skills? Your answer to these questions can be brief. Four or five sentences should suffice!...
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