Question: The identification assumption here is that birth order affects education but does not directly affect wages (except through its effect on education). You can test
The identification assumption here is that birth order affects education but does not directly affect wages (except through its effect on education). You can test this assumption by checking the correlation between birth order and the residuals from the second stage regression. how to do this
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
