ECON 151 Lecture 18: ECON 151 L18
11 Nov 2020
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With y a non-monetary outcome (for instance happiness, life satisfaction, trust, vote). Why is the relationship between schooling and non-monetary outcome likely to be biased: choose two non-monetary outcomes. Average age of death (health), happiness or retirement age. Happiness, health, leisure: discuss why using an ols relationship between both outcomes and schooling is likely to be biased. Super hard to measure, ovb, need to find data on so much shit - courtney, common trend assumption (regardless of schooling, people"s happiness still varies. More school = longer life; could be really into health without education. Happiness = correlated b/c if you"re happier you do more work (better in edu) Health = if you"re more educated, you make healthier lifestyle choices. Leisure = better job means better time off but also more chill work schedule. 1 year of schooling = 5% increase in income. Twins sample better b/c same genetic makeup and schooling experience. Voting is very significantly related to education.
