Using the Vella and Verbeek (1998) study, download their data set which is posted on the Journal
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Using the Vella and Verbeek (1998) study, download their data set which is posted on the Journal of Applied Econometrics web site and
(a) Replicate their descriptive statistics given in Table I. Confirm that the unconditional union premium is around \(15 \%\).
(b) Replicate their random effects probit estimates of union membership given in Table II.
(c) Replicate the wage regressions with union effects given in Table III.
(d) Replicate the wage regressions under unrestricted sorting given in Table V.
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