Selection bias is a problem when trying to estimate the return to education in a standard human capital model. In this context, what does selection bias refer to?
A) The data sample is nonrandom.
B) Workers self-select education levels and jobs based on their abilities and preferences.
C) Colleges select who they are willing to accept.
D) The wage-schooling locus does not have a constant slope.
E) The wage-schooling locus is estimated to have a negative slope.
Correct Answer:
Verified
Q1: What is implied when the wage-schooling profile
Q2: The slope of the wage-schooling locus provides
Q3: If ability is positively related to schooling,
Q4: What is the stopping rule for choosing
Q5: Which statement about human capital is false?
A)
Q7: Which of the following reasons is not
Q8: Paula is considering going to law school.
Q9: Why might people choose to go to
Q10: Which group tends to have the highest
Q11: Labor force participation rates tend to
A) increase
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