Question: Using regression adjustments t o estimate the effects o f policy intervention Suppose you want t o examine the effects o f a job training

Using regression adjustments to estimate the effects of policy intervention
Suppose you want to examine the effects of a job training program, and estimate the following regression model todoso:
widehat( earn 98)=4.5+2.2 train +0.34 earn 96+0.32educ-0.15 age +2.2 married,
where
earn 98= labor market earnings in1998,in thousands of dollars;
train =1if the employee participated in the training program, and =0 otherwise;
earn 96= labor market earnings in1996(the year before the training program),in thousands of dollars;
educ= years of schooling;
age = age, in years;
married =1if the employee is married, and =0 otherwise;
n=1,140
R2=0.43
Using unrestricted regression adjustment, which of the following best represents the estimated equation with full interactions?
{:-
{:widehat(earn9)=5.4+3.5train+0.4earn96+0.33educ-0.21age+2.5married+0.17train*(educ-bar(educ))+0.033train*(educ-bar(educ))+0.06train*(educ-bar(educ))+1.42train*(educ-bar(educ))
Using your answer from the preceding question, the estimated average treatment effect of the training program is widehat(ura)=
Which of the following best represents the meaning of the estimated average effect of the training program?
The training program led to a decrease in1998 earnings of $400.
The training program led toan increase in1998 earnings of $3,500.
The training program led to a decrease in1998 earnings of $2,500.
The training program led to a decrease in1998 earnings of $1,420.
Using regression adjustments t o estimate the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!