1. To test the effectiveness of a job training program on the likelihood of being employed (EMP), we specify a logistic regression model:
Where EMP is a binary variable equal to 1 if an individual is employed and 0 if not employed and train is a binary variable equal to 1 if an individual participated in the program and 0 otherwise. Think of the error term e as containing unobserved worker education. If more educated individuals have a greater chance of being selected for the program, and you use the above model, how confident can you be about β1? That is, how does the omission of worker education affect the β1 -hat estimate? Be specific.
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