Question: 19.6 Continue with the wage function discussed in the text. Th e raw data contains information on several variables besides those included in Eq. (19.39).
19.6 Continue with the wage function discussed in the text. Th e raw data contains information on several variables besides those included in Eq. (19.39). For example, there is information on marital status (single, married, and divorced), ASVAB scores on arithmetic reasoning and word knowledge, faith (none, Catholic, Jewish, Protestant, other), physical characteristics (height and weight), category of employment (Government, private sector, self-employed) and region of the country (North central, North eastern, Southern, and Western). If you want to take into account some of these variables in the wage function, estimate your model, paying due attention to the problem of endogeneity. Show the necessary calculations.
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