What is econometric data analysis?

Econometrics
Student Name:
Instructor Name:
Course Number:
27th February 2020

Q1:
The problems with the data presented include;
1. The presented data is missing several important parameters that are necessary for making
a conclusive remark on the model. Among the missing parameters are;
 P-values to show the significant attributes
 The R-squared values to help show what proportion of the dependent variable is
explained by the independent variables.
 The F-statistics for the overall model significance.
 Standard errors for the independent variables
Q2:
Separating the Variables
Table 1: Separating the variables
Household Demographic Variables
Infants 0-5
Infants 0-5 Squared
Children 6-14
Children 6-14 Squared
Youth 15-24
Youth 15-24 Squared
Adults 25-64
Adults 25-64 Squared
Elderly 65 +
Elderly 65+ Squared
Characteristics of Household Head
Age 19 or younger
Age 20-29
Age 30-39
Age 50-59
Age 60 and older
Female
Recent Migrant
Inactive
Unemployed
Primary Education Complete

Secondary Education Incomplete
Secondary Education Complete
Superior Education Incomplete
Superior Education Complete
University Education
Type of Worker:
Employer
Self-Employed
Informal Worker
Public Sector Worker
Occupation:
Operative
Technication
Professional
Characteristics of Spouse of Head
No Spouse
Inactive
Unemployed
Primary Education Complete
Secondary Education Complete
Secondary Education Incomplete
Superior Education Complete
Superior Education Incomplete
University Education
Type of Worker:
Employer
Self-Employed
Informal Worker
Public Sector Worker
Occupation:
Operative
Technication
Professional
Q3:
Oaxaca decomposition
This section presents the Oaxaca decomposition with the interaction aggregating to the groups in
part 2 above.
Table 2: Means of Variables used in the regression analysis
Oct.1995 Oct. 1998 Oct. 2001 May-02
Log Normalized Income 0.599 0.634 0.452 0.029
Normalized Income 2.863 3.033 2.771 1.975