Selection Bias Is a Problem When Trying to Estimate the Return

question 9

Multiple Choice

Selection bias is a problem when trying to estimate the return to education in a standard human capital model. In this context, what does selection bias refer to?

• A) The data sample is nonrandom.
• B) Workers self-select education levels and jobs based on their abilities and preferences.
• C) Colleges select who they are willing to accept.
• D) The wage-schooling locus does not have a constant slope.
• E) The wage-schooling locus is estimated to have a negative slope.

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Definitions:

Method of Discipline

An approach or technique used to teach or correct behavior, often discussed in parenting, education, or organizational contexts.

Developmental History

A detailed account of a person's growth and development milestones throughout life, often used in medical and psychological evaluations.

Food Allergies

Immune system reactions to certain foods that cause symptoms ranging from mild to severe.

Immigrated

Moved into a country or region from one's country of origin to live there permanently.