Why Do Labor Economists Often Find It Difficult to Estimate

question 21

Multiple Choice

Why do labor economists often find it difficult to estimate the ceteris paribus return to education, in terms of wage, using non-experimental data?

• A)Education level in non-experimental data is probably dependent on other omitted factors that also affect wage.
• B)In a non-experimental setting, education level is often difficult to measure.
• C)Wage is often reported unreliably and inaccurately.
• D)Experience, another factor that also affects wage, is generally difficult to measure.

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Definitions:

Negative Linear Relationship

A type of correlation where one variable increases as the other decreases in a consistent, straight-line manner.

Positive Linear Relationship

A relationship in which one variable increases as the other variable also increases, represented by a straight line with a positive slope.

Sodium

A chemical element, symbol Na, a highly reactive metal and an essential nutrient for human health.

Calories

A measure of energy in food, technically defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius.