Analysis of Factors Affecting Movements of Wagepan from 1980 to 1987

HANOI UNIVERSITY

FACULTY OF MANAGEMENT AND TOURISM

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Econometrics Report

Analysis of factors affecting movements of Wagepan from 1980 to 1987

Lecturer: PhD. Dao Thanh Binh

Tutor: Ms. Pham Thi My Phuong

Group 1 – Tut 7:

1. Nguyen Quynh Thu: 1504000095

2. Le Thi Thuy Tien: 1504000098

3. K.D.Greshani Chamika: 15L4000006

4. Enkhbayar Ariunzaya: 15L4040001

Hanoi, May 11th 2018

Table of Contents

Table of Contents 0

I. Introduction 1

II. Literature Review 1

III. Methodology 2

1. Variables 2

2. Model Specification 2

IV. Data Analysis and Results 8

1. Descriptive Statistics 8

2. Model Analysis and Results 10

V. Summary and Conclusion 15

REFERENCES 16

I. Introduction

The purpose of our paper is to find out the determinants of Wagepan using ordinary least square method. The data used is “Wagepan” taken from the book: Jeffrey M. Wooldridge, Econometrics Analysis of Cross Section and Panel data, 2002. The data set consists of 44 variables with 4360 observations in the period of time from 1980 to 1987. Our group expected to find the factors that affect movements of Wagepan after using Eviews to run several tests. The result shows that some of the variables influence the rate of wage.

II. Literature Review

The Hausman specification test, also known as Durbin-Wu-Hausman test, is a statistical hypothesis test titled after three professors in econometrics including James Durbin, De-Min Wu and Jerry Allen Hausman. The test assesses the consistency of an estimator when contrasted with an option, less proficient estimator which is as now known to be reliable. It encourages one to calculate if a statistical model corresponds to the information.

Consider the linear model y = b*x + e, where y denotes the dependent variable and x denotes the vector of regressors, b is a vector of coefficients and e is the error term, there are two estimators for b