Assignment 6 Solved: Multiple regression

Assignment 6: Multiple regression

To be submitted electronically

Quantitative methods for conflict studies and human rights, ECH3360

1. The file csv is based on the 2009 Survey of Labour and Income Dynamics, implemented by Statistics Canada. The SLID is a representative sample of Canadian households. The file includes data on individuals living in 1-person households, between the ages of 25 and 34, who are not currently enrolled in an educational institution. The variables in the data set are age, sex, wages salaries, which is total annual income from wages and salaries in dollars, years schooling, which is the total number of years that the person spent in education, and years experience, which is the total number of years of full-time equivalent job experience.
   • Estimate a regression of wages on a female dummy variable (Hint: you will need to create this dummy variable). Interpret the
   • Estimate a regression of wages on number of years of schooling, number of years of experience, and a female dummy How much does an additional year of schooling increase wages? What about an additional year of job experience?
   • Would you be comfortable interpreting the results above as the causal impact of effect of more education on wages? Why or why not?
   • How much of the variation in wages is explained by number of years of schooling, education, and gender?
   • Imagine that the (true) population regression function is:

wages = β₀ + β₁years schooling + β₂female + u.

Instead you estimate the following regression:

wages = β₀ + β₁years schooling + u.

 

Under what conditions would you expect to get an unbiased (good) estimate of β₁? Do these conditions hold in the data?

2. The article Ethnicity, Insurgency, and Civil War by James Fearon and David Laitin  is  an  important article that tries to explain the causes of civil.
   • Briefly explain the research design  that is employed in the article.  In particular, explain what is the unit of observation and how the authors used comparisons to test the hypotheses explored in the
   • What do the authors find when they test the hypothesis that ethnic fractionalization causes civil war? Explain with reference to the relevant coefficient, t-value, and confidence
   • What is the relationship between per capita income and civil war onset uncovered in the regres- sion? Does this tell us the causal effect of per capita income on civil war?

Assignment 6: Multiple regression

Assignment 6: Multiple regression