Selection Bias Is a Problem When Trying to Estimate the Return

question 25

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)Having a non-random data sample.
• 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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