How Much Does Education Influence Wages? - Economics and Quantitative Analysis

Internal Code: MAS6624

Economics and Quantitative Analysis:

1) write a brief overview of the association between education and earnings. Why would economists be interested in this particular issue? 2) The section provides an overview of the empirical approach used to examine the association between education and wages. 3) You need to present and summarize the results of your statistical analysis. In particular, the result sections must: a) Provide a descriptive analysis of the two variables (e.g., mean, standard deviation, minimum and maximum). b) Develop a scatter diagram with education as the independent variable. What does the scatter diagram indicate about the relationship between the two variables? c) Estimate a regression equation that can be used to predict the wages given the level of education. d)  State the estimated regression equation and interpret the meaning of the slope coefficient. e) Is there a statistically significant association between education and wages? What is your conclusion? f) Did the regression equation provide a good fit? Explain. g) Calculate the predicted wages for a person with 12 and 14 years of education, respectively. What is the difference in hourly wage rate?