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Heteroskedasticity in Wage Analysis by Muhammad Irfan Faisal is a document available to read on EtoBox.
What is Heteroskedasticity in Wage Analysis about?
The document examines heteroskedasticity in earnings data from the financial sector in Budapest in 1999. It first shows a scatter plot of wages against age that indicates increasing variance with age. It then performs an OLS regression of the log of wages on variables like gender, education and age. Residual plots and statistical tests show the presence of heteroskedasticity. The regression is then re-estimated with robust standard errors to produce correct inferences in the presence of heteroskedasticity.
- Author
- Muhammad Irfan Faisal
- Language
- EN