Multiple Choice
Suppose that in order to estimate of the average effect of participation in a job training program (train) on wage, you included controls for education (educ) , years of experience (exper) in your model: log(wage) = +
+
+
+ u . Which of the following is a reason why the coefficient,
, might be biased?
A) Exper is uncorrelated with train.
B) Educ is likely correlated with both wage and train .
C) Educ and exper are highly correlated with each other.
D) There might be some other variable that is also correlated with both wage and train.
Correct Answer:

Verified
Correct Answer:
Verified
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