We know this because our p-value is much smaller than 0.

Explain why or why not. Hand-in assignment 6 consists of Empirical Exercise E Estimate the regression of weeksworked on morekids using samesex as an instrument.

How large is the fertility effect on labor supply? Here we can see that our OLS model shows that women with more than 2 kids will work 5. Furthermore, our RSE are high at 0. Explain why the OLS regression estimated in a is inappropriate for estimating the causal effect of fertility morekids on labor supply weeksworked.

In this exercise you will estimate this effect using data for married women from the U. Min 1Q Median 3Q Max On average, a woman will work 6.

Our r square is very low, meaning there is little fit to our regression line. 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.

Regress weeksworked on the indicator variable morekids using OLS. Our R-square is also low, at 0.

Explain why samesex is a valid instrument for the instrumental variable regression of weeksworked on morekids. 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.

On average, do women with more than two children work less than women with two children? 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.

Do the results change when you include the variables ageml, black, hispan, and othrace in the labor supply regression treating these variable as exogenous?

Follow the following steps: Is the effect large? They have a headstart so to speak. Is samesex a weak instrument? Finally, our p-value is much smaller than 0. We can see that our R-square is very low, our regression model using fertility as the independent variable only explains 1.

The data set contains information on married women aged with two or more children.

Is it statistically significant? Are couples whose first two children are of the same sex more likely to have a third child? However, we have a p-value that is much smaller than 0.Handout seminar 8, ECON Herman Kruse April 10, reg weeksm1 morekids, robust Linear regression Number of obs = F(1,) = Oct 27, · Working with data and finding best-fit equations using Desmos.

The least-squares regression equation can be used to predict the value of one variable (called the dependent variable, often denoted by [pic]) based on a given value of the other variable (called the independent variable, often denoted by [pic]).

The least-squares regression equation can be used to predict the value of one variable (called the dependent variable, often denoted by [pic]) based on a given value of the other variable (called the independent variable, often denoted by [pic]).

View Isaac Aktam, HBSc’s profile on LinkedIn, the world's largest professional community. Isaac has 4 jobs listed on their profile. See the complete profile on LinkedIn and discover Isaac’s. (c) The linear regression of morekids on samesex (a linear probability model) yields morekids = 0.

The estimated value of βM orekids is which indicates that women with more than 2 children work 5. so that the OLS estimator of βM orekids is positively biased.

DownloadRegression for weeksm1 on morekids

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