Consider the following model: Y i = 1 + 2 Education i + 2

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Consider the following model:
Y_i= β₁ + β₂ Education _i + β₂ Years of experience + u_i
Suppose you leave out the years of experience variable. What kinds of problems or biases would you expect? Explain verbally.

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Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

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Question Posted: Apr 30, 2018 04:23 AM

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Consider the following model: Y i = 1 + 2 Education i + 2

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Step by Step Answer:

If you leave out the years of experience X 3 from the model the coe...View the full answer

Basic Econometrics

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