A researcher is using a panel data set on n = 1000 workers over T = 10 years (from 2001 through 2010) that contains the workers' earnings, gender, education, and age. The researcher is interested in the effect of education on earnings. Suppose you run a regression of earnings on person-specific and time-specific control variables. Can this regression be used to estimate the effect of gender on an individual's earnings or the effect of the national unemployment rate on an individual's earnings? O A. Neither effect can be estimated using this regression. OB. It can be used to estimate the effect of both gender and the national unemployment rate on an individual's earnings OC. It can be used to estimate the effect of gender on an individual's earnings, but not the effect of the national unemployment rate on an individual's earnings. OD. It can be used to estimate the effect of the national unemployment rate on an individual's earnings, but not the effect of gender on an individual's earnings.

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Chapter1: Making Economics Decisions
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A researcher is using a panel data set on n = 1000 workers over T = 10 years (from 2001 through 2010) that contains the workers' earnings, gender, education, and
age. The researcher is interested in the effect of education on earnings. Suppose you run a regression of earnings on person-specific and time-specific control
variables.
Can this regression be used to estimate the effect of gender on an individual's earnings or the effect of the national unemployment rate on an individual's earnings?
A. Neither effect can be estimated using this regression.
B. It can be used to estimate the effect of both gender and the national unemployment rate on an individual's earnings
C. It can be used to estimate the effect of gender on an individual's earnings, but not the effect of the national unemployment rate on an individual's earnings.
D. It can be used to estimate the effect of the national unemployment rate on an individual's earnings, but not the effect of gender on an individual's earnings.
Transcribed Image Text:A researcher is using a panel data set on n = 1000 workers over T = 10 years (from 2001 through 2010) that contains the workers' earnings, gender, education, and age. The researcher is interested in the effect of education on earnings. Suppose you run a regression of earnings on person-specific and time-specific control variables. Can this regression be used to estimate the effect of gender on an individual's earnings or the effect of the national unemployment rate on an individual's earnings? A. Neither effect can be estimated using this regression. B. It can be used to estimate the effect of both gender and the national unemployment rate on an individual's earnings C. It can be used to estimate the effect of gender on an individual's earnings, but not the effect of the national unemployment rate on an individual's earnings. D. It can be used to estimate the effect of the national unemployment rate on an individual's earnings, but not the effect of gender on an individual's earnings.
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