6 Suppose you have two years' worth of panel data on wages and work experience of adults; however, the data set has no further information on thecharacteristics of the individuals in the data set. Specifically, you have cross-sectional wage and work experience data on individuals in 2006, andcross-sectional data on those same individuals in 2012. You plan to use the following fixed effects model to analyze the effects of work experience onwages:log (waget) %3D Во + бо уг 10, + В1 егреriи + a; + uiwherewage; = yearly wage of individual i at time t, in dollarsyr 10, =1 in the year 2010 (t = 2), and =0 otherwise (t = 1exper = years of work experience of individual i, at time tai = unobserved (time-invariant) effectUit = idiosyncratic errorTwo other factors that can influence wage, which you have not controlled for in your model, are innate ability and health.Use the following table to indicate which term in the fixed effects model captures the effect of innate ability, which term captures the effect of health,and which term captures the effect of work experience.aiUitB1Work experienceHealthInnate ability

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Suppose you have two years' worth of panel data on wages and work experience of adults; however, the data set has no further information on the characteristics of the individuals in the data set. Specifically, you have cross-sectional wage and work experience data on individuals in 2006, and cross-sectional data on those same individuals in 2012. You plan to use the following fixed effects model to analyze the effects of work experience on wages: log (waget) — Во + бо ут 10, + Biezperiu + aj +ut where wage = yearly wage of individual į at time t, in dollars yr 10, =1 in the year 2010 (t = 2), and =0 otherwise (t = 1) exper = years of work experience of individual i, at time t aj = unobserved (time-invariant) effect Uit = idiosyncratic error Two other factors that can influence wage, which you have not controlled for in your model, are innate ability and health. Use the following table to indicate which term in the fixed effects model captures the effect of innate ability, which term captures the effect of health, and which term captures the effect of work experience. aj Uit B1 Work experience Health Innate ability

Suppose you have two years' worth of panel data on wages and work experience of adults; however, the data set has no further information on the characteristics of the individuals in the data set. Specifically, you have cross-sectional wage and work experience data on individuals in 2006, and cross-sectional data on those same individuals in 2012. You plan to use the following fixed effects model to analyze the effects of work experience on wages: log (waget) — Во + бо ут 10, + Biezperiu + aj +ut where wage = yearly wage of individual į at time t, in dollars yr 10, =1 in the year 2010 (t = 2), and =0 otherwise (t = 1) exper = years of work experience of individual i, at time t aj = unobserved (time-invariant) effect Uit = idiosyncratic error Two other factors that can influence wage, which you have not controlled for in your model, are innate ability and health. Use the following table to indicate which term in the fixed effects model captures the effect of innate ability, which term captures the effect of health, and which term captures the effect of work experience. aj Uit B1 Work experience Health Innate ability

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)

6th Edition

ISBN:9781337111348

Author:Bruce Crauder, Benny Evans, Alan Noell

Publisher:Bruce Crauder, Benny Evans, Alan Noell

Chapter5: A Survey Of Other Common Functions

Section5.3: Modeling Data With Power Functions

Problem 3TU

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