EC 570 Econometrics

The relationship between wages and education, ability, and family characteristics was recently studied by Koop and Tobias [2004]. Their data is available in two parts. The first file contains the panel of 17,919 observations on the Person ID and 4 time-varying variables. The second file contains time invariant variables for the individual or the 2,178 households. See the article for details on the empirical model and data construction (data source).

Part 1:
1. Column 1 = Person id (ranging from 1 to 2178),
2. Column 2 = Education,
3. Column 3 = Log of hourly wage,
4. Column 4 = Potential experience,
5. Column 5 = Time trend.
Part 2:
1. Column 1 = Time invariant ability,
2. Column 2 = Mother's education,
3. Column 3 = Father's education,
4. Column 4 = Dummy variable for residence in a broken home,
5. Column 5 = Number of siblings.

Homework 1

Greene's (7th ed.) Chapter 3: Application (pp. 49-50).

Use only the first 15 persons of the 17,919 observations of the data provided. If you do not know how to merge and extract from the above two datasets, use Table 3.5 in Greene's (6th ed.) instead. Sorry, you have to type it in.

Homework 2

Greene's (7th ed.) Chapter 5: Application 1 (pp.145-146).

Use all of the 17,919 observations of the data provided.