Suppose a Study Finds That College Students Who Received Financial

question 43

Essay

Suppose a study finds that college students who received financial aid have a greater tendency to graduate than do college students who do not receive financial aid.What is the identification problem that the authors must solve? If the authors conclude on the basis of the data that receiving financial aid increases the ability of college students to graduate,are they correct? What would be the best solution to the identification problem? Explain.

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Definitions:

Overall Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment within the total economy.

Unemployment

A condition where individuals who are capable of working and are actively seeking work are unable to find employment.

Discouraged Workers

People who are not actively seeking employment due to believing no jobs are available for them or there are no positions for which they would qualify.

Unemployed

The condition of being jobless despite actively searching for work within the recent past.