Posted: February 2nd, 2015

Econometrics

Paper, Order, or Assignment Requirements

For this assignment, use the dataset eaef_as2_2014.dta, which has 1199 observations, and is downloadable from SyD. The data contain information on wages and characteristics workers in United States, in 2002. It includes a variable union which indicates whether the person’s wages are set by collective bargaining.
TASK:
a) Estimate how much more or less private sector workers in the US on average earn when their wages are set by collective bargaining, holding their characteristics constant. Interpret the findings. [75%]
b) Extend part a) by adding an interaction for union and female. Include all three variables (union, female and union*female) into the model and interpret the results