Analyzing Employment Status & Family Income in PSID Data, Assignments of Economics

Download Analyzing Employment Status & Family Income in PSID Data and more Assignments Economics in PDF only on Docsity! Economics 725 Homework Assignment #3 Assigned: September 18, 2008 Due: September 25, 2008 1. Go to the PSID web-site. Using the data cart that you created in Homework #2 as a basis, add the second and third mention current employment status variables for heads and wives from the 2005 Family file (variables ER25105, ER25106, ER25363, and ER25364). Save the revised data cart and “check out,” creating an ASCII data set and accompanying SAS code. (2 points) 2. Read the PSID FAQ regarding missing values for the heads’ and wives’ employment status 1994-2005 (item 35, http://psidonline.isr.umich.edu/Guide/FAQ.aspx#285). Follow the directions from the last paragraph in that section to create (and label) versions of heads’ and wives’ employment status for 2005 that are equivalent to pre-1994 versions of these variables. (4 points) 3. Create (and label) a composite current employment status variable for heads, wives, and individuals for 2005. (2 points) 4. Select observations for people who a. were PSID respondents in 2005, b. had valid age information in 2005, c. were 16 years of age or older in 2005, and d. had valid employment status information (based on your composite variables). (2 points) 5. Create (and label) the following variables: a. HWINDCAT, a categorical measure for people who are heads (=1), wives (=2), or others (=3) b. CURR_EMP, a binary measure for people who are employed. (4 points) 6. Use PROC TABULATE to create a 3-column table containing means and standard deviations of CURR_EMP and family income (ER28037) conditional on HWINDCAT. (2 points) 7. Create a SAS data set that contains means of CURR_EMP and ER28037 conditional on people’s HWINDCAT status and ages. (2 points) 8. Using the data set with conditional means, create line graphs with a. the age profile of people’s incomes conditional on HWINDCAT, and b. the age profile of people’s employment conditional on HWINDCAT. (4 points) Extra credit: Using your individual-level dataset, create line graphs of age profiles of people’s incomes and employment conditional on HWINDCAT using cubic regression interpolation and 95 percent confidence intervals. (4 points)