Chapter 11: Latent Curve Models
a) Go through the variables and for each variable: write down how you think it relates to other variables (including whether the relation is positive or negative). Substantiate your answers.
b) Based on your answers to (a) formulate a model and estimate its parameters.
Vella, F., and Veerbek, M. (1998). Whoose wages do unions raise?A dynamic model of unionism and wage rate determinination for young men. Journal of Applied Econometrics, 61, 783–820.
Variables in the data set are:
exper years of labor market experience
hours annual hours worked
married = 1 if married
union = 1 if in union
lwage log wage
black = 1 if black
hisp =1 if Hispanic
educ years of schooling