Suppose you are interested in estimating the effect of a job training program on wages for study
Question:
Suppose you are interested in estimating the effect of a job training program on wages for study participants who all have been unemployed for a period between 1 and 3 years. Which of the following is not a likely problem?
Group of answer choices
a. Program participants are probably more motivated than those who don’t partake. This likely translates to higher wages independent of the job training program.
b. Program participants are more willing to receive education and are more “coachable”. This likely translates to higher wages independent of the job training program.
c. Randomization of participation in the program probably won’t work since, even with randomization, the non-participants are probably less cognitively gifted than participants.
d. Some program participants are only there as a condition of their parole. Being an ex-con likely translates to lower wages independent of the job training program.
e. Program participants are likely to have been unemployed for longer and are more “desperate”. A longer spell of unemployment and desperation are probably both likely to contribute to lower wages independent of the job training program.
Introductory Econometrics A Modern Approach
ISBN: 978-0324660548
4th edition
Authors: Jeffrey M. Wooldridge