You have a panel data set where 545 male workers are observed each year between 1980 and 1987. For each worker you observe their hourly wage in dollars (wage), education in years of schooling (educ), a binary indicator for whether they are part of a union (union), and years of experience on the job (exper). You are interested in the effect of union status on wages. You run the following Random Effects (RE) estimation in Stata: xtreg wage exper c.exper#c.exper educ union, re theta Random-effects GLS regression Group variable: id Number of obs 4,316 Number of groups 545 R-sq: Obs per group: within = 0.1854 min = between = 0.1344 avg = 7.9 overall = 0.1565 max = Wald chi2(4) 939.51 corr(u_i, X) = 0 (assumed) Prob > chi2 0.0000 theta min 5% median 95% max 0.6225 0.6742 0.6932 0.6932 0.6932 wage | Coef. Std. Err. P>|z| [95% Conf. Interval] exper | .6578099 .0438874 14.99 0.000 .5717922 .7438276 c. exper#c.exper | -.0236939 .0032066 -7.39 0.000 -.0299788 -.017409 educ | .6376607 .0544909 11.70 0.000 .5308605 .744461 union | .5223977 .0982229 5.32 0.000 3298844 .714911 „cons | -4.77303 661195 -7.22 0.000 -6.068948 -3.477112 sigma_u | sigma_e | rho | 2.0787607 1.8949898 .54614751 (fraction of variance due to u_i) Based on this output, which is the weight assigned to the between variation by the RE estimator? O The weight assigned by the RE to the between variation is 0.1344 O The weight assigned by the RE to the between variation ranges from 0.0941 to 0.1425 O The weight assigned by the RE to the between variation is 0.8656 O None of the above
You have a panel data set where 545 male workers are observed each year between 1980 and 1987. For each worker you observe their hourly wage in dollars (wage), education in years of schooling (educ), a binary indicator for whether they are part of a union (union), and years of experience on the job (exper). You are interested in the effect of union status on wages. You run the following Random Effects (RE) estimation in Stata: xtreg wage exper c.exper#c.exper educ union, re theta Random-effects GLS regression Group variable: id Number of obs 4,316 Number of groups 545 R-sq: Obs per group: within = 0.1854 min = between = 0.1344 avg = 7.9 overall = 0.1565 max = Wald chi2(4) 939.51 corr(u_i, X) = 0 (assumed) Prob > chi2 0.0000 theta min 5% median 95% max 0.6225 0.6742 0.6932 0.6932 0.6932 wage | Coef. Std. Err. P>|z| [95% Conf. Interval] exper | .6578099 .0438874 14.99 0.000 .5717922 .7438276 c. exper#c.exper | -.0236939 .0032066 -7.39 0.000 -.0299788 -.017409 educ | .6376607 .0544909 11.70 0.000 .5308605 .744461 union | .5223977 .0982229 5.32 0.000 3298844 .714911 „cons | -4.77303 661195 -7.22 0.000 -6.068948 -3.477112 sigma_u | sigma_e | rho | 2.0787607 1.8949898 .54614751 (fraction of variance due to u_i) Based on this output, which is the weight assigned to the between variation by the RE estimator? O The weight assigned by the RE to the between variation is 0.1344 O The weight assigned by the RE to the between variation ranges from 0.0941 to 0.1425 O The weight assigned by the RE to the between variation is 0.8656 O None of the above
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Question
![You have a panel data set where 545 male workers are observed each year between 1980 and
1987. For each worker you observe their hourly wage in dollars (wage), education in years of
schooling (educ), a binary indicator for whether they are part of a union (union), and years of
experience on the job (exper). You are interested in the effect of union status on wages. You
run the following Random Effects (RE) estimation in Stata:
• xtreg wage exper c.exper#c.exper educ union, re theta
Random-effects GLS regression
Number of obs
4,316
Group variable: id
Number of groups
545
R-sq:
Obs per group:
within
= 0.1854
min =
between = 0.1344
avg =
7.9
overall = 0.1565
max =
Wald chi2(4)
939.51
%3D
corr(u_i, X)
= 0 (assumed)
Prob > chi2
0.0000
theta
min
5%
median
95%
max
0.6225
0.6742
0.6932
0.6932
0.6932
wage |
Coef.
Std. Err.
P>|z|
[95% Conf. Interval]
exper |
.6578099
.0438874
14.99
0.000
.5717922
.7438276
c.exper#c.exper |
-.0236939
.0032066
-7.39
0.000
-.0299788
-.017409
educ |
.6376607
.0544909
11.70
0.000
.5308605
.744461
union |
.5223977
.0982229
5.32
0.000
.3298844
.714911
„cons |
-4.77303
661195
-7.22
0.000
-6.068948
-3.477112
sigma_u |
sigma_e |
rho |
2.0787607
1.8949898
.54614751
(fraction of variance due to u_i)
Based on this output, which is the weight assigned to the between variation by the RE estimator?
O The weight assigned by the RE to the between variation is 0.1344
O The weight assigned by the RE to the between variation ranges from 0.0941 to 0.1425
O The weight assigned by the RE to the between variation is 0.8656
O None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b8c9b98-5fbd-4d31-a6f4-3d74ac9a7d10%2Fe15be5ad-0e16-41fc-83a6-49d4917ae765%2Fftw644s_processed.png&w=3840&q=75)
Transcribed Image Text:You have a panel data set where 545 male workers are observed each year between 1980 and
1987. For each worker you observe their hourly wage in dollars (wage), education in years of
schooling (educ), a binary indicator for whether they are part of a union (union), and years of
experience on the job (exper). You are interested in the effect of union status on wages. You
run the following Random Effects (RE) estimation in Stata:
• xtreg wage exper c.exper#c.exper educ union, re theta
Random-effects GLS regression
Number of obs
4,316
Group variable: id
Number of groups
545
R-sq:
Obs per group:
within
= 0.1854
min =
between = 0.1344
avg =
7.9
overall = 0.1565
max =
Wald chi2(4)
939.51
%3D
corr(u_i, X)
= 0 (assumed)
Prob > chi2
0.0000
theta
min
5%
median
95%
max
0.6225
0.6742
0.6932
0.6932
0.6932
wage |
Coef.
Std. Err.
P>|z|
[95% Conf. Interval]
exper |
.6578099
.0438874
14.99
0.000
.5717922
.7438276
c.exper#c.exper |
-.0236939
.0032066
-7.39
0.000
-.0299788
-.017409
educ |
.6376607
.0544909
11.70
0.000
.5308605
.744461
union |
.5223977
.0982229
5.32
0.000
.3298844
.714911
„cons |
-4.77303
661195
-7.22
0.000
-6.068948
-3.477112
sigma_u |
sigma_e |
rho |
2.0787607
1.8949898
.54614751
(fraction of variance due to u_i)
Based on this output, which is the weight assigned to the between variation by the RE estimator?
O The weight assigned by the RE to the between variation is 0.1344
O The weight assigned by the RE to the between variation ranges from 0.0941 to 0.1425
O The weight assigned by the RE to the between variation is 0.8656
O None of the above
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