Topics in Labor Economics – Problem Set 2
March 20, 2023
劳动经济学代写 Try being concise! Most questions do not require a half-a- page answer (check the marks again!) You have a (strict)1300 word limit.
This problem set offers you great practice and feedback for the final assessment. Before you start working on the questions, a few general remarks:
- The general rules for academic malpractice apply! If you need a re-fresher, look here https://online.manchester.ac.uk/webapps/blackboard/content/ listContentEditable.jsp?content_id=_11454599_1&course_id=_46033_
- Especially: You have to formulate your own answers! This implies three things:
1.You must not copy-paste the answer from other sources (e.g., the lecture notes, other papers,…) but formulate your own answer (this includes you must not write almost an identical sentence and just exchange 1,2 words…).
2.While you can discuss the questions with your classmates you each have to write and submit individual answers!
3.Using software that writes answers for you or external help (someone writ ing the paper for you) is obviously prohibited. 劳动经济学代写
- Only your results and responses to the questions below will be graded (This means I will not look at your code). While I encourage you to discuss this prob-lem set with your classmates, you all have to submit individual answers (i.e.,your submissions will be checked for plagiarism, see point above!)
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You can paste and edit the code from the tutorial in answering your questions. Just be aware, that you need to adjust it to the problem at hand.
- Make sure that your answer is comprehensible. This includes checking spelling, grammar, punctuation, and such. If I cannot understand your response, I cannot give you points on it.
– If you are worried about this, there are resources available to help you with this: https://www.ucae.manchester.ac.uk/
– Of course, you can use programs that check your spelling, e.g. the in-built function in Word.
- Answer your questions with full sentences (essay style). Bullet points are not allowed.
- Allocate your time wisely. If a question gives more points, it means that I expect a more thorough answer.
- Thorough ≠ longer. Try being concise! Most questions do not require a half-a-page answer (check the marks again!) You have a (strict)1300 word limit.
1 Quantitative Exercise (46 marks) 劳动经济学代写
Download the data “PS2.R”. The data contains information on one cohort of students such as their age, their GPA, and their income at age 30. The data were collected to explore the effects of a reform that lowered the maximum number of years of high-school education from 9 to 8 years. We are interested in estimating the causal effect of this reform on labor market outcomes later in life.
In the whole exercise, assume the reform took place in Dec. 1998 and children enter school if they are 6 years old as of July 1st in a given year (so children born Jan-June 1992 enter the school under the old system (9 years) while children born July-Dec. 1992 enter under the new system in the following year).
We use this cutoff to estimate a sharp RDD model, i.e., we exploit the fact that stu- dents who are born after July 1st in a given year, have to wait for another year before entering elementary school. Hence, half of a birth year cohort will receive 9 years of high-school education, while the latter half will only receive 8 years.
Answer the following questions. Note, unless indicated by the question, always use all individuals (the universe of individuals) in your estimations, graphs, and so on.
Also, check the tips in section 2 at the end of the paper.
1.Plot the following distributions:
(a) (1 Mark) years of schooling as a function of birth month
(b) (1 Mark) income by birth month
(c) (1 Mark) count of individuals by birth month (empirical cumulative distri-bution function of driving variable)
2.(4 marks) Explain why producing the plots in the previous exercise are important and whether estimating a RDD is justified.
3.Baseline Model: Estimate the following model using the whole data set: 劳动经济学代写
incomei =β0 +β1treatmenti +β2(birthmonthi −7)
+β3treatmenti ∗ (birthmonthi −7)
+γ1 f emalei +γ2GPAi +εi (1)
(a) (7 marks) Present your results (all coefficients, standard errors, number ofobservations) in a table!
(b) (4 marks) Interpret the results for income: What was the (causal) effect of the reform (i.e., the effect of treatment on income)?
4.Re-estimate your model but only include individuals born between April to Septem-ber 1992 in your estimation.
(a) (7 marks) Present your results in a table.
(b) (2 marks) Compare them to the results from the Baseline Model. 劳动经济学代写
(c) (6 marks) Explain the rationale for reducing the sample windows.
(d) (3 marks) Discuss: Does reducing the sample window make sense in this setting?
5.(6 marks) Compare the results from your Baseline model to the results from Dolton and Sandi (lecture 8). Discuss 2 potential reasons why the reform studied here produces different results!
6.(4 marks) Explain why we should be careful to use this reform as a blueprint for other reforms aiming at reforming the time spent in school.
2 Additional details on the data set 劳动经济学代写
Tips:
- Define the treatment variable based on the birth month, such that individuals born in July or later are treated.
- Again, you can use the code from the tutorial! Just adapt it accordingly!
- Make sure you are using the correct RDD model!
- All the answers do have solutions and do not produce error messages. If you get error messages, it must be your code and not the data!
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