Using the National Longitudinal Survey of young women who were 14-26 years in 1968 with independent variables age (age in current year),grade (current grade completed),south (1 if south),ttl_exp (total work experience),tenure (job tenure,in years),and the dependent variable ln_wage (natural log of wage/GNP deflator).You obtain the following pooled cross section results in STATA.
a)Comment on the coefficient estimates and the statistical significance of the estimates.What type of model is this? What are the drawbacks of estimating this type of model?
You then estimate a fixed effects model in STATA and obtain the following results
b)Explain how a fixed effects model is estimated and in what circumstances fixed effects models are the most appropriate option.Be specific.
c)How do these results differ from the results in part a?
d)Why was grade dropped? Be specific.
Finally,you estimate a fixed effects model in STATA and obtain the following results
e)Explain how a random effects model is estimated and in what circumstances random effects models are the most appropriate option.Be specific.
f)Why is grade not dropped from this specification but it was dropped for the fixed effects model?
g)Which of the three models do you prefer? Why?

Question

Using the National Longitudinal Survey of young women who were 14-26 years in 1968 with independent variables age (age in current year),grade (current grade completed),south (1 if south),ttl_exp (total work experience),tenure (job tenure,in years),and the dependent variable ln_wage (natural log of wage/GNP deflator).You obtain the following pooled cross section results in STATA.  
a)Comment on the coefficient estimates and the statistical significance of the estimates.What type of model is this? What are the drawbacks of estimating this type of model?
You then estimate a fixed effects model in STATA and obtain the following results  
b)Explain how a fixed effects model is estimated and in what circumstances fixed effects models are the most appropriate option.Be specific.
c)How do these results differ from the results in part a?
d)Why was grade dropped? Be specific.
Finally,you estimate a fixed effects model in STATA and obtain the following results  
e)Explain how a random effects model is estimated and in what circumstances random effects models are the most appropriate option.Be specific.
f)Why is grade not dropped from this specification but it was dropped for the fixed effects model?
g)Which of the three models do you prefer? Why?

Quizplus · Accepted Answer

The Answer of Using the National Longitudinal Survey of young women who were 14-26 years in 1968 with independent variables age (age in current year),grade (current grade completed),south (1 if south),ttl_exp (total work experience),tenure (job tenure,in years),and the dependent variable ln_wage (natural log of wage/GNP deflator).You obtain the following pooled cross section results in STATA.  
a)Comment on the coefficient estimates and the statistical significance of the estimates.What type of model is this? What are the drawbacks of estimating this type of model?
You then estimate a fixed effects model in STATA and obtain the following results  
b)Explain how a fixed effects model is estimated and in what circumstances fixed effects models are the most appropriate option.Be specific.
c)How do these results differ from the results in part a?
d)Why was grade dropped? Be specific.
Finally,you estimate a fixed effects model in STATA and obtain the following results  
e)Explain how a random effects model is estimated and in what circumstances random effects models are the most appropriate option.Be specific.
f)Why is grade not dropped from this specification but it was dropped for the fixed effects model?
g)Which of the three models do you prefer? Why?

Using the National Longitudinal Survey of Young Women Who Were