TRUE OR FALSE To test the effectiveness of a job training program on the subsequent wages of workers, we specify the model ln(wage) = β0 +β1train+β2educ+β3exper +u, where train is a binary variable equal to unity if a worker participated in the program. Think of the error term u as containing unobserved worker ability. If less able workers have a greater chance of being selected for the program, and you use an OLS analysis, then it is likely that we conclude that the program is less effective than it actually is.

TRUE OR FALSE To test the effectiveness of a job training program on the subsequent wages of workers, we specify the model ln(wage) = β0 +β1train+β2educ+β3exper +u, where train is a binary variable equal to unity if a worker participated in the program. Think of the error term u as containing unobserved worker ability. If less able workers have a greater chance of being selected for the program, and you use an OLS analysis, then it is likely that we conclude that the program is less effective than it actually is.

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter4: Eigenvalues And Eigenvectors

Section4.6: Applications And The Perron-frobenius Theorem

Problem 25EQ

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