You are asked to study the causal effect of education (measured in years) on wage rate (dollars per hour). Describe: a An observational panel data set for studying this effect.
Education is one of the most important industries in any nation. Without education the universe will not exist. If people won’t be literate, nobody will know how to run an economy, there will be no technical advancements, there will be innovations. Everything will come to a standstill in life. Hence, education is extremely as the world can function without anything except water, food and education. Most of the expenditure of the government is done on education and most of the revenue which an economy generates is also just through education. Hence, it plays a vital role in boosting the economy of the nation. Many a times, there are families who cannot afford to send their children to school or cannot finance their education. Also, it is the motive of every government to try and educate as many people in the nation as possible to make the nation a literate place. The more the literacy, the greater the development in the nation. Hence, to remove the monetary barrier in education, the government always opens up various schemes in which it provides a little subsidy to the person who is eligible in the category, that is a person who belongs to a background which is not economically strong.
Hence, the overall aspect of the study of the education sector as a measure on the basis of number of years which calculate the per hourly wage in dollar is greatly influenced by the GDP (Gross Domestic Product).The literacy percentage plays an important role in deciding where the economy stands. The higher the literacy the rate, the higher the growth of the nation and the sooner the nation will be termed as a developed nation. On the other hand, the slower the growth of the nation, the longer the nation will take time to get the developed tag.