Labor economists studying the determinants of women's earnings discovered a puzzling empirical result. Using randomly selected employed

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Labor economists studying the determinants of women's earnings discovered a puzzling empirical result. Using randomly selected employed women, they regressed earnings on the women's number of children and a set of control variables (age, education, occupation, and so forth). They found that women with more children had higher wages, controlling for these other factors. Explain how sample selection might be the cause of this result.
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Introduction to Econometrics

ISBN: 978-0133595420

3rd edition

Authors: James H. Stock, Mark W. Watson

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