Introductory Economics And Analysis

Introductory Economics
Name:
Institution:

Question 1
a) Descriptive Statistics
summarize hrwage union hours
Variable | Obs Mean Std. Dev. Min Max
-------------+----------------------------------------------------------------------------------
hrwage | 818 10.31315 6.338158 .8833333 66.5
union | 818 0.1503667 .3576492 0 1
hours | 818 35.73961 11.22735 1 120
The table above shows that hourly wage had a mean of 10.13 with a standard deviation of
6.33; besides, the maximum wage is given as 66.5 whereas the minimum wage is 0.833.
Moreover, hours worked per week recorded a mean of 35.74 with a standard deviation of 11.23.
b) As evident, there are 818 observations
Question 2
a) Generating a new variable
gen lwage = ln(hrwage)
b)
union | Freq. Percent Cum.
------------+-----------------------------------
0 | 695 84.96 84.96
1 | 123 15.04 100.00
------------+-----------------------------------
Total | 818 100.00
As shown 15.04% of the participants are union members
mean hrwage if age>=40 & age<49, over( union, nolabel)
Mean estimation Number of obs = 218
--------------------------------------------------------------
Over | Mean Std. Err. [95% Conf. Interval]
-------------+------------------------------------------------
hrwage |
0 | 10.68661 .4956229 9.709763 11.66347
1 | 12.36535 .8602308 10.66987 14.06083
--------------------------------------------------------------
It is shown, the mean hourly wage of union members between the 40-49 is $12.38

c) Age Group
recode age (min/24 =1)(25/34=2)(35/44=3)(45/54=4)(55/max=5), gen(agegroup)
RECODE |
of age | Freq. Percent Cum.
------------+-----------------------------------
1 | 39 4.77 4.77
2 | 259 31.66 36.43
3 | 307 37.53 73.96
4 | 169 20.66 94.62
5 | 44 5.38 100.00
------------+-----------------------------------
Total | 818 100.00
The table above shows that 307 women are in age group 3 (35-44 years)
Question 3
a) Graphical relationship
graph bar (mean) union, over(agegroup)
.05 .1 .15 .2
mean of union
It is evident that age group 3 recoded the highest mean union thus this group has
many of its members in the union.