Use data "wagepan" from library(Wooldridge) Run the following code:(R studio) library(wooldridge) data(wagepan) 1. Report the descriptive statistics of the variable "lwage", "educ", "black", "exper", "union" for overall period. 2. Estimate the model using OLS log(wage) = b0 + b1*educ + b2*black + b3*exper + b4*union + e Discuss the results, in particular, impact of education on wage. 3. Estimate the model using the OLS with Newey-West standard errors. Discuss the results. Are there any changes compared the point 2? 4. Estimate the model using the time fixed effect. Discuss the results. Are there any changes compared those point 2? 5. Estimate the model using the time fixed effect and cluster standard errors by person. Discuss the results. Are there any changes compared to those point 4? 6. Should we use the fixed effect or the OLS? 7. Estimate the model using the random effect. Discuss the results. Are there any changes compared to those in point 4? 8. Should you use the fixed effect or the random effect? 9. Discuss the benefits of the OLS model relative to the other models. 10. Discuss the benefits of the fixed effect relative to the other models. (PS:whats the R language)
