Your Econometrics Textbook Stated That There Will Be Omitted Variable

question 29

Essay

Your econometrics textbook stated that there will be omitted variable bias in the OLS estimator unless the included regressor, X, is uncorrelated with the omitted variable or the omitted variable is not a determinant of the dependent variable, Y. Give an intuitive explanation for these two conditions.

---

Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that makes submission a condition of employment or a factor in employment decisions or that creates an intimidating, hostile, or offensive work environment. The two types are hostile environment and quid pro quo.

Hostile Work Environment

A situation where an employee finds the workplace uncomfortable or fears going to work due to discriminatory behavior, harassment, or any unwelcome conduct.

Gender Discrimination

Unfair or unequal treatment of individuals based on their gender or sex.

At-Will Employment

A type of employment arrangement where either the employer or the employee can terminate the employment at any time, for any reason, provided it's not illegal.