Data Set I Have Used For My Research

1464 WordsApr 29, 20156 Pages
Data set I have used for my research is from Wooldridge. The sample I am going to use is restricted to individuals who have answered all the elements in survey with 722 observations. Reason for picking up this data set is that it includes the ability measures IQ and KWW, which are the scores from two intelligence tests. The IQ scores were collected as part of a survey of the respondents ' schools. The KWW test examines respondents ' knowledge about the labour market, covering the duties, educational attainment, and relative earnings of ten occupations. Since KWW cannot be used as an independent of education thus it is mostly used as an instrument in this paper. I have performed several regressions using repeated observations of same individuals. Although data size largely has been reduced I believe it’s still not too small for my purpose. Variables in the sample I have used in estimating wage level are summarized in Table 1 appendix. There are shortcoming of this data set such as average age of individuals is only 32, concerns are that at such early age full effects of schooling and ability are not easily observable. Secondly as data has been restricted it becomes non-random as there are clearly a lot of decisions being taken none of which are likely to be random. This indicates the potential non-random nature of the data, which given I assume randomness of this data set is a bit of an issue. Introduction Wᵢ= βEᵢ+Xᵢa+ ᵢ W in the equation above is wage measured at hourly
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