Business, 05.12.2019 01:31 Ksedro1998
To test the effectiveness of a job training program on the subsequent wages of workers, we specify the model log(wage) = β0 + β1train + β2educ + β3exper + u, 11 where train is a binary variable equal to unity if a worker participated in the program. think of the error term u as containing unobserved worker ability. if less able workers have a greater chance of being selected for the program, and you use an ols analysis, what can you say about the likelybias in the ols estimator of β1?
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