Problem Set 1: OLS Review
EC 421: Introduction to Econometrics
in this problem set come from the paper “Are Emily and George More Employable
than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination” by Bertrand and Mullainathan (published in the American Economic Review (AER) in 2004).
In their (very influential) paper, Bertrand and Mullainathan use a clever experiment to study the effects of race in labor-market decisions by sending fake résumés to job listings. To isolate the effect of race on employment decisions, Bertrand and Mullainathan randomize whether the résumé lists a typically African-American name or a typically White name.
OBJECTIVE This problem set has three purposes: (1) reinforce the econometrics topics we reviewed in class; (2) build your R toolset; (3) start building your intuition about causality within econometrics.
Problem 1: Getting started
Start here. We’re going to set up R and read in the data
1a. Open up RStudio, start a R new script (File ? New file ? R Script). You will hand in this script as part of
1b. Load the the pacman package. Now use its function p_load to load the tidyverse package.
What is the purpose of conducting normalization to a relational database? Using examples to explain your answers.
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