Is the effect large. Explain why samesex is a valid instrument for the instrumental variable regression of weeksworked on morekids. Hand-in assignment 6 consists of Empirical Exercise E Is it statistically significant.

Our R-square is also low, at 0. We can see that our R-square is very low, our regression model using fertility as the independent variable only explains 1. This makes sense as women with 2 children are more liekly to have 3 and have to work less to care for them than women who have none or only one.

On average, a woman will work 6. Follow the following steps: The data set contains the variable samesex, which is equal to 1 if the first two children are of the same sex boy-boy or girl-girl and equal to 0 otherwise. Estimate the regression of weeksworked on morekids using samesex as an instrument.

Min 1Q Median 3Q Max Do the results change when you include the variables ageml, black, hispan, and othrace in the labor supply regression treating these variable as exogenous.

Regress weeksworked on the indicator variable morekids using OLS. However, we have a p-value that is much smaller than 0.

In this exercise you will estimate this effect using data for married women from the U. How large is the fertility effect on labor supply. The data set contains information on married women aged with two or more children. Finally, our p-value is much smaller than 0.

Is samesex a weak instrument. Secondly, we satisfy condition 2 because our instrumental value has no correlation with the error terms, due to observing that the second stage regression is statistically significant with similar slope and the same intercept as the original OLS regression of fertility and labor supply.

We know this because our p-value is much smaller than 0. On average, do women with more than two children work less than women with two children. Furthermore, our RSE are high at 0. They have a headstart so to speak. Explain why the OLS regression estimated in a is inappropriate for estimating the causal effect of fertility morekids on labor supply weeksworked.

Explain why or why not. Here we can see that our OLS model shows that women with more than 2 kids will work 5. Are couples whose first two children are of the same sex more likely to have a third child.

Our r square is very low, meaning there is little fit to our regression line. Instructions. Hand-in assignment 6 consists of. Empirical Exercise E (skip e,g) You must use this template to hand in your assignment. Follow the following steps: Change your name and SFU ID in the header above (between the —- and —- at the top of the file.).

Instructions. Hand-in assignment 6 consists of. Empirical Exercise E (skip e,g) You must use this template to hand in your assignment. Follow the following steps: Change your name and SFU ID in the header above (between the —- and —- at the top of the file.). Two-stage least squares examples 1 Angrist: Vietnam Draft Lottery 2 3 Vietnam era service • Defined as • Estimated million served during era • million were in SE Asia morekids byte %g =1 if mom had more than 2 kids boy1st byte %g =1 if 1st kid was a boy.

1 ii Explain why the OLS regression in the previous question is inappropriate from STAT at University Of Chicago. Explain why samesex is a valid instrument for the instrumental regression of weeksworkded on morekids. (v) Estimate the regression of weeksworked on morekids using samesex as an Hispanic or white weeksm1 mom’s weeks 20%(5).

(iv) Explain why samesex is a valid instrument for the instrumental regression of weeksworkded on morekids.

(v) Estimate the regression of weeksworked on morekids using samesex as an instrument. How large is the fertility effect on labor supply? Hispanic or white weeksm1 25%(4). Handout seminar 8, ECON Herman Kruse April 10, reg weeksm1 morekids, robust Linear regression Number of obs = F(1,) =

Regression for weeksm1 on morekids
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