if education is heavily affected by IQ and IQ is closely correlated with both wage and education level, how would a regression of wage on education be biased? What regression violation is this? (
if education is heavily affected by IQ and IQ is closely correlated with both wage and education level, how would a regression of wage on education be biased? What regression violation is this? (
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1.3CE
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if education is heavily affected by IQ and IQ is closely correlated with both wage and education level, how would a regression of wage on education be biased? What regression violation is this? (For econometrics)
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