Homework answers / question archive / EC5800 Introduction to Econometrics (Autumn 2021) Report: The on the determinant of wage Submission via Turnitin by 4PM on XXX Executive Summary: Maximum 100 Words Main Report: Maximum 1,500 words (Excluding tables, flourcs, appendices and references) Make sure the formatting of your report is consistent and appropriately structured Overview With the rising inflation, the UK government hires you to find the prominent determinant of individual's wage

EC5800 Introduction to Econometrics (Autumn 2021) Report: The on the determinant of wage Submission via Turnitin by 4PM on XXX Executive Summary: Maximum 100 Words Main Report: Maximum 1,500 words (Excluding tables, flourcs, appendices and references) Make sure the formatting of your report is consistent and appropriately structured Overview With the rising inflation, the UK government hires you to find the prominent determinant of individual's wage

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EC5800 Introduction to Econometrics (Autumn 2021)
Report: The on the determinant of wage
Submission via Turnitin by 4PM on XXX
Executive Summary: Maximum 100 Words
Main Report: Maximum 1,500 words
(Excluding tables, flourcs, appendices and references)
Make sure the formatting of your report is consistent and appropriately structured
Overview
With the rising inflation, the UK government hires you to find the prominent determinant of
individual's wage. Indeed, the UK government would like to know what the main variables
affecting wages are.
To answer that question, you must identify your preferred empirical econometric model
specification. To facilitate this analysis, you should derive the best statistical relationship between
the wage (or the logarithm of wage) of an individual in the sample and the explanatory variables.
You must explain why a specific functional form has been chosen.
The Data Set Description
Name of variables: husage husunion husearns huseduc husblck hushisp hushrs kidgeé
eams age black educ hispanic union faminc husexp
exper kidlt6 hours expersq owifcine inlf hrwage lwage
Number of observation points: 55
1. husage husband's age
2. husunion =I if bus. in union
3. husearns hus. weekly cams
4. huseduc husband's yrs schooling
5. husblck =1 if hus. black
6. hushisp =1 if hus. hispanic
7. hushrs hus. weekly hours
8. kidgeé =1 if have child >= 6
9. earns wife's weekly earnings
10. age wife's age
11. black =1 if wife black
12. educ wife's yrs schooling
13. hispanic =I if wife hispanic
14. union =1 if wife in union
15. faminc annual family income
16. husexp huseduc - husage - 6

17. exper age - educ - 6

18. kidlt6 =1 if have child < 6

19. hours wife's weekly hours

20. expersq exper’2

21. nwifeinc non-wife inc, $1000s

22. inlf =) if wife in labor force

23. hrwage eams/hours

24. lwage log(hrwage)

Main Project Tasks

Task 1: You will first need to gencrate your data set in EXCEL.

Task 2: Analyse the data estimating various earning equations of your choice in EXCEL.
Task 3: Prepare and submit a report on the determinant of earning.

Your Submission

Your project via Tumitin on Moodle

Your EXCEL file which includes your data, all model results, and calculations of test statistics
also via Moodle link titked -EC5800 Project — Additional Materials.