Question

1. You are asked to study the causal effect of education (measured in years) on wage rate (dollars per hour). Describe: a An observational panel data set for studying this effect  

Answer 1

The education is necessary and it depends upon the cost apart of the expenditure in an economy. Most of the revenue and as well as expenditure incurred from the education. The government is providing a subsidy to eligible persons who belong to poor or economically backward. The others spend more dollars to get in the education and it is helpful to enhance the government economy.

The overall study of education measure in terms of years and relatively calculate of wage per hour in dollars is influenced greater part at GDP (Gross Domestic Product). The literacy percentage mainly deciding factor of generating revenue of major part in the economy and also it is helpful to keep the country at developed nations list.