Problem 4. The paper of Angrist and Evans (1998) gives a good example how the results of many(OLS and 2SLS) regressions are presented in a concise informative way in academic papers. Table 7on Slide 47 of Part 1 of IV slides presents the main estimation results of the paper. Using this tableanswer the following questions. Angrist and Evans (1998) made the table quite easy to follow, butif anything is unclear please ask in the class.(a) Consider columns (1) and (2). Interpret the coefficients in the rows "Worked for pay", "Hours/Week","In (Family income)". Compare the results of the OLS and the 2SLS regressions.(b) What is the effect of having more than 2 children on "Labor income" of Married Women ac-cording to OLS and to 2SLS with instrument "Same Sex"? What are the corresponding 95%confidence intervals?TABLE 7-OLS AND 2SLS ESTIMATES OF LABOR-SUPPLY MODELS USING 1980 CENSUS DATAMarried women(5)2SLSEstimation methodInstrument for More than2 childrenDependent variable:Worked for payWeeks workedHours/weekLabor incomeIn(Family income)In(Non-wife income)(1)OLSAll women(2)2SLSSame sex-0.176 -0.120(0.002) (0.025)-8.97 -5.66(0.07) (1.11)-6.66-4.59(0.06) (0.95)-3768.2 -1960.5(35.4) (541.5)-0.126 -0.038(0.004) (0.064)(3)2SLSTwo boys,Two girls(4)OLSSame sex-0.113-0.167-0.120(0.025) (0.002) (0.028)[0.013]-5.37 -8.05 -5.40(1.10) (0.09) (1.20)[0.017]-4.37 -6.02 -4.83(0.94) (0.08) (1.02)[0.030]-1870.4 -3165.7 -1344.8(538.5) (42.0) (569.2)[0.126]-0.045 -0.132 -0.051(0.064) (0.004) (0.056)[0.319]-0.053 0.023(0.005) (0.066)(6)2SLSTwo boys,Two girls-5.16(1.20)[0.071]0.004-0.113 -0.008(0.028) (0.001) (0.009)[0.013]Husbands of married women(9)2SLS-0.053(7)OLS(0.056)[0.743](8)2SLS0.016(0.066)[0.297]Same sex-4.610.560.25(1.01) (0.05) (0.70)[0.049]-1321.2 -1505.5 -1248.1(565.9)(103.5) (1397.8)[0.703]-0.820.59(0.04) (0.60)Two boys,Two girls0.001(0.008)[0.013]0.45(0.59)[0.030]0.50(0.69)[0.71]-1382.3(1388.9)(0.549)Notes: The table reports estimates of the coefficient on the More than 2 children variable in equations (4) and (6) in the text. Other covariatesin the models are Age, Age at first birth, plus indicators for Boy 1st, Boy 2nd, Black, Hispanic, and Other race. The variable Boy 2nd isexcluded from equation (6). The p-value for the test of overidentifying restrictions associated with equation (6) is shown in brackets.Standard amame nes manosted in maranthacan

Given the table containing OLS and 2SLS estimates of labor-supply models using 1980 Census data as

Problem 4. The paper of Angrist and Evans (1998) gives a good example how the results of many (OLS and 2SLS) regressions are presented in a concise informative way in academic papers. Table 7 on Slide 47 of Part 1 of IV slides presents the main estimation results of the paper. Using this table answer the following questions. Angrist and Evans (1998) made the table quite easy to follow, but if anything is unclear please ask in the class. (a) Consider columns (1) and (2). Interpret the coefficients in the rows "Worked for pay", "Hours/Week", "In (Family income)". Compare the results of the OLS and the 2SLS regressions. (b) What is the effect of having more than 2 children on "Labor income" of Married Women ac- cording to OLS and to 2SLS with instrument "Same Sex"? What are the corresponding 95% confidence intervals? TABLE 7-OLS AND 2SLS ESTIMATES OF LABOR-SUPPLY MODELS USING 1980 CENSUS DATA All women Married women (2) 2SLS (5) 2SLS Estimation method Instrument for More than 2 children Dependent variable: Worked for pay Weeks worked Hours/week Labor income In(Family income) In(Non-wife income) OLS Same sex Two boys, Two girls -0.176 -0,120 (0.002) (0.025) -8.97 -5.66 (0.07) (1.11) -6.66 -4.59 (0.06) (0.95) -3768.2 -1960.5 (35.4) (541.5) (3) 2SLS -0.126 -0.038 (0.004) (0.064) -0.113 (0.025) [0.013] -4.37 (0.94) [0.030] (4) OLS Same sex -5.37 -8.05 -5.40 (1.10) (0.09) (1.20) [0.017] -0.167 -0.120 (0.002) (0.028) (0.064) [0.319] -6.02 -4.83 (0.08) (1.02) -1870.4 -3165.7 -1344.8 (538.5) [0.126] (42.0) (569.2) -0.045 -0.132 -0.051 (0.004) (0.056) -0.053 0.023 (0.005) (0.066) (6) 2SLS Two boys, Two girls Husbands of married women (8) 2SLS (9) 2SLS (7) OLS -0.113 -0.008 0.004 (0.028) (0.001) (0.009) [0.013] -5.16 -0.82 (1.20) (0.04) [0.071] -0.053 (0.056) [0.743] Same sex 0.016 (0.066) [0.297] -4.61 0.25 0.56 (1.01) (0.05) (0.70) [0.049] 0.59 (0.60) -1321.2 -1505.5 -1248.1 (565.9) (103.5) (1397.8) [0.703] Two boys, Two girls 0.001 (0.008) [0.013] 0.45 (0.59) [0.030] 0.50 (0.69) [0.71] -1382.3 (1388.9) (0.549) Notes: The table reports estimates of the coefficient on the More than 2 children variable in equations (4) and (6) in the text. Other covariates in the models are Age, Age at first birth, plus indicators for Boy 1st, Boy 2nd, Black, Hispanic, and Other race. The variable Boy 2nd is excluded from equation (6). The p-value for the test of overidentifying restrictions associated with equation (6) is shown in brackets. Standard amam ana samostad in maranthaca