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Consider the following model Yi0+1Eduationi+2Experience.pdf

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Consider the following model: Yi=0+1Eduationi+2Experiencei+ui. Suppose you leave out the years of experience variable. What kinds of problems or biases would you expect? Explain verbally (in case there is a bias, determine its sign)..

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Consider the following model: Yi=0+1Eduationi+2Experiencei+ui. Suppose you leave out the years of experience variable. What kinds of problems or biases would you expect? Explain verbally (in case there is a bias, determine its sign).

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Consider the following model Yi0+1Eduationi+2Experience.pdf

  • 1. Consider the following model: Yi=0+1Eduationi+2Experiencei+ui. Suppose you leave out the years of experience variable. What kinds of problems or biases would you expect? Explain verbally (in case there is a bias, determine its sign).