# Chapter 11: Latent Curve Models

**11.1.** As mentioned in Example 10.1, Vella and Veerbeck (1998) included 16 variables plus a set of dummies in their analysis. Download an extract from their data (Wagepan.sav), and

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

exper^{2}

black = 1 if black

hisp =1 if Hispanic

educ years of schooling