To be used onStatasoftware
3 Question 3. Empirical
The data in Jobtrain.dta come from a job training experiment conducted for low-income men during 1976–1977; see Lalonde XXXXXXXXXXyou can find this data set in the Assignment 1 folder).
The variables are: age, agesq(square of age), black (if the person is African American this is equal to 1), hispanic (if the person is Hispanic this is equal to 1), re74, re75, re78 are the real earnings for that person in years 1974, 1975, 1978; unem74, unem75, unem78 are the un- employment status for that person in years 1974, 1975, 1978. If the person is unemployed in year 1974 unem74 is equal to 1 for instance.
Answer the following:
a.Summarize and describe the data (yo do not need to comment, just show me the results and codes)
b.Find the correlation between educ and lre78. Then plot (using twoway scatter com- mand) these two variables. What do you conclude?
c.Use the indicator variable train to determine the fraction of men receiving job training.
d.The variable re78 is earnings from 1978, measured in thousands of 1982 dollars. Compute the sample mean, standard deviation for average hourly re78 for the sample of men receiving job training and the sample not receiving job training. Construct a 95% confidence interval for the population means of re78 for the sample of men receiving job training and the sample not receiving job training. Is the di↵erence of means statistically significant at 5 percent level? (Hint: ttest)
e.The variable unem78 is an indicator of whether a man is unemployed or not in 1978. What fraction of the men who received job training are unemployed? What about for men who did not receive job training? Comment on the di↵erence. Is the di↵erence of means statistically significant at 5 percent level?
f.From partsd.ande., does it appear that the job training program was e↵ective? What would make our conclusions more convincing?
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