Persico, Postlewaite, and Silverman (2004) analyzed data from the National Longitudinal Survey of Youth 1979 cohort to assess the relationship between height and wages for white men who were between 14 and 22 years old in 1979. This data set consists of answers from individuals who were asked questions in various years between 1979 and 1996. Here we explore the relationship between height and wages for the full sample that includes men and women and all races.

Table 2.7 describes the variables we use for this question.

(a) Summarize the wage, height (both height85 and height81), and sibling variables. Discuss briefly.

(b) Create a scatterplot of wages and adult height (height85). Discuss any distinctive observations.

(c) Create a scatterplot of wages and adult height that excludes the observations with wages above \(\$ 500\) per hour.

(d) Create a scatterplot of adult height against adolescent height. Identify the set of observations where people's adolescent height is more than their adult height. Do you think we should use these observations in any future analysis we conduct with this data? Why or why not?

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TABLE 2.7 Variables for Height and Wage Data in the United States Variable name wage96 height85 height81 siblings Description Hourly wages (in dollars) in 1996 Adult height: height (in inches) measured in 1985 Adolescent height: height (in inches) measured in 1981 Number of siblings