Assignment Requirements
This assignment is meant to provide students with a chance to review basic concepts and techniques that most will end up using in the empirical part of the Senior Project. Statistical Programs: Stata, R, SAS or Excel are all accepted. The choice is left up to the student.
Labor Force in the United States – Below you are asked to use regression analysis to determine the effect of a macroeconomic variable on population growth in the US.
1. Obtain data on the labor force and GDP and population for the United States between 1970 and 2010 from the World Bank (or other sources). Construct time series of the participation rate (labor force divided by population) and GDP per capita. Briefly describe the data (source, years, is it real or nominal etc). Briefly summarize the data (average participation rate and GDP per capita over the sample period).
2. Regress the participation rate on GDP per capita for the 40 year period. Report results. Define and discuss the statistical significance of the coefficients. Define and discuss the R-squared value. Define and discuss the p-value of the coefficient on GDP per capita.
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