• Use the data in FRINGE.RAW for this exercise.
• For what percentage of the workers in the sample is a pension equal to zero? What is the range of pensions for workers with nonzero pension benefits? Why is a Tobit model appropriate for modeling pension?
• Estimate a Tobit model explaining pension in terms of exper, age, tenure, Educ, depends, married, white, and male.
• Do whites and males have statistically significantly higher expected pension benefits?
• Add union to the Tobit model and comment on its significance.
• Does gender or race have an effect on the pension-earnings ratio?