Questions 6-8 Returns to education. We are interested in estimating the returns to education for working individuals in a small country in Africa. Our dataset contains 1734 working individuals. We estimate the model In ( w a g e ) = ? 0 ? + ? 1 ? e d u c + ? 2 ? exper + u where wage is the hourly wage, educ denotes years of education, and exper denotes years of tabor market experience, In this small African country, females have restricted access to education. There are 7 parts to this queston. You will be asked to provide just 1 answer in each part. In our dataset we observe three variables that we strongly believe do not have a relationship with wages, but that are correlated with the endagenous variable educ. These variables are disf, which denotes the distance between the worker's village and the closest school, oralhygicne, which is a dummy variable that takes the value of 1 if the worker regularty bruahes his/her teeth the government provides a free toothbrush to each citizen and we believe that more educated people tend to brush their teeth more ofteni. and Zobary. Which is a dummy variable that takes the value of 1 if the worker has access to a library in his/her viliage. We estimate our regression model using TSLS. We want to test if our instruments satisfy the relevance requirement. In the 1st stage of TSLS we estimate the following. equation: cdue = ? 0 ? + ? 2 ? exper + ? 2 ? dist + ? 3 ? oralhygiene + ? 4 ? library + ? . Rartiol From the first stage, we obtain educ: = ? ^ 0 ? + A ? 1 ? exper + A ? 2 ? dist + ? 3 ? oralhygiene + ? 4 ? tibrary. A) ln ( tage ) = ? 0 ? + ? 1 ? edue + ? 2 ? exper + u B) ln ( w a g e ) = ? 0 ? + ? 1 ? e d u c + ? 2 ? exper + ? 3 ? d i s t + ? 1 ? oralfygiene + ? 5 ? tibrary + u C) ln ( w a g e ) = ? 0 ? + ? 1 ? e d u c + u D) ln ( w a g e ) = ? 0 ? + ? 1 ? educ + ? 2 ? d i s t + ? 3 ? oralhygicne + ? 4 ? tibrary + u