From Meeting with Mark the day before
VARIABLE "YERQAL2" AND "EDAGE"
we might wanna use EDAGE for exp and YERQAL2 for education.
Why? think about a student who drops out of his Uni after his first year. He will be 19 assuming he has entered the Uni at 18. For him, EDAGE (age leaving full time education) = 19 but YERQAL2 (age obtained highest qualification, which should be A-levels in this case) = 18.
LIST OF THINGS WE HAVE TO COME BACK TO LOOK AT
We will come back to look at the case where Z is not equal to X later. That is, we might add some extra variables into R's model (such as hourpay) apart of those from X.
LIST OF THINGS TO DO NEXT
We decided to have Z = X for the time being.
the coefficient of "londse" seems to be varried a lot with the change in assumption.
Combine sampling weights and IP weights and use these modified weights in the OLS estimation.
Write a report for Mark about the arguments for using IPW estimator in Wooldridge (2002, 2003).
Do some diagnostic tests.
Try to do Heckman, Newey's selection models.
Next step should be Smith or TLR.
Meet some time in September.