The purpose of this exercise is to compare the estimates and standard errors obtained by correctly using

Question:

The purpose of this exercise is to compare the estimates and standard errors obtained by correctly using 2SLS with those obtained using inappropriate procedures. Use the data file WAGE2.RAW.
(i) Use a 2SLS routine to estimate the equation
log(wage) = Î²0 + Î²1 educ + Î²2 exper + Î²3 tenure + Î²4plack + u,
where sibs is the IV for educ. Report the results in the usual form.