Suppose That in an Effort to Explain Variation in Wages,you

question 25

Essay

Suppose that in an effort to explain variation in wages,you collect a panel data set with 12,300 total observations over 3 different years with the independent variables as experience,education,married (dummy variable is 1 if married and 0 if not married)and male (dummy variable is 1 if male and 0 if female).
a)How do you estimate a first-differenced model for these data? Explain in as much detail as possible.
b)What are the advantages of estimating a first-differenced model?
c)What are the drawbacks of estimating a first differenced model for this scenario?

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Definitions:

Transnational Surrogacy

A surrogacy arrangement involving a surrogate mother and intended parents from different countries.

Ethical Issues

Moral challenges or dilemmas that require an individual or organization to choose between options that must be evaluated as right or wrong.

Surrogacy

An arrangement where a woman agrees to carry and give birth to a child for another person or couple.

Anesthetics

Anesthetics are substances used to induce anesthesia, a state of temporary induced loss of sensation or awareness, typically to perform surgical procedures.