5 Exercises

  1. Select at least 4 predictors (including age but excluding exper) to explain women in the labor force and provide theoretical justification for your selection.

  2. Estimate a model using the predictors you selected, present your findings and provide an assessment of the model quality.

  3. Does the addition of exper to your model improve its predictive performance?

  4. Based on your model, what’s the probability of a 40 year old woman with 12 years of experience to be in the labor force? Make sure to include a confidence interval for your prediction.

  5. Compare the effects of experience in the labor market on the outcome variable under two hypothetical scenarios:
    • A woman with age in the 25th percentile
    • A woman with age in the 75th percentile

  6. Provide a visualization to illustrate your findings.

Reference: Mroz, T.A. (1987): “The Sensitiviy of an Empirical Model of Married Women’s Hours of Work to Economic and Statistical Assumptions”, Econometrica, 55, 765-799.