Consider the following wage equation where (E D U C=) years of education and (E X P

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Consider the following wage equation where $E D U C=$ years of education and $E X P E R=$ years of experience:

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Suppose that observations on EXPER are not available, and so you decide to use the variables $A G E$ and $A G E^{2}$ instead. What assumptions are sufficient for the least squares estimate for $\beta_{2}$ to be given a causal interpretation?

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Principles Of Econometrics

ISBN: 9781118452271

5th Edition

Authors: R Carter Hill, William E Griffiths, Guay C Lim

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Question Posted: Mar 30, 2024 11:01 AM

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Consider the following wage equation where (E D U C=) years of education and (E X P

Question:

In(WAGE) = B +EDUC + 3EXPER + BEXPER + e

Step by Step Answer:

Principles Of Econometrics

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