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Intro To Econometric Analysis
Intro To Econometric Analysis
Lecture 1
What is Econometrics
Applications
I
So one may take data of people with equal education and see
if there is really low income for African-Americans or not.
But the data set may not be proper. The reason is that
economic theory tells discrimination induces people to invest
less in education and experience.
But it may be the case that black people have dropped out of
labor force at a much higher rate that the white people in this
period and we may get this anomaly in the data analysis.