Question: 1 . A simple model relating wage to the years of education ( educ ) is ( i ) Give examples of factors that can

1. A simple model relating wage to the years of education (educ) is
(i) Give examples of factors that can be contained in u. Are these likely to be correlated with education?
(ii) Will a simple regression analysis uncover the ceteris paribus effect of education on wage? Explain.

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