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A Researcher Wanted to Know Whether Contracting Out Government Services

Question 6

Multiple Choice

A researcher wanted to know whether contracting out government services improves municipal efficiency .The political party in charge is unrelated to its government's efficiency but strongly correlated with contracting out .If political party were added as a control variable in this model, the standard error would most likely ...


A) Increase
B) Decrease
C) Remain the same
D) Impossible to say
The table on the next page is taken from "Maternal Employment and Teenage Childbearing" by Leonard Lopoo in the Journal of Policy Analysis and Management 24(1) 2004.We will only consider the OLS regression results.The unit of analysis is the mother.The variable "daughter has a birth at age 17 or 18" is a dummy variable with the meaning implieD."Mother's education" refers to the years of education that a mother has."Mother's annual work hours" is the hours worked during the year.Use the table to answer the following questions:

Correct Answer:

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