Suppose a researcher collects a random sample of data on earnings of stu- dents who graduated from all UK universities.
Posted: Thu May 19, 2022 7:26 am
Suppose a researcher collects a random sample of data on
earnings of stu- dents who graduated from all UK universities. The
researcher runs a regression of earnings on a dummy variable
capturing whether each student attended a top 5 university or not.
The regression shows that the students who graduated from the top 5
universities earned 20% more in salary per year than the students
who did not. Discuss a potential bias in this regression study. How
can the researcher correct for this bias?
earnings of stu- dents who graduated from all UK universities. The
researcher runs a regression of earnings on a dummy variable
capturing whether each student attended a top 5 university or not.
The regression shows that the students who graduated from the top 5
universities earned 20% more in salary per year than the students
who did not. Discuss a potential bias in this regression study. How
can the researcher correct for this bias?