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Textbook Site for:
Principles of Macroeconomics, Third Edition
John B. Taylor, Stanford University
Internet Exercises
Chapter 2: Observing and Explaining the Economy


Education and Earnings

Questions:

Examine the 1999 Digest of Education Statistics table on earnings and educational attainment.

  1. Is there a positive or negative correlation between years of education and earnings? Does this pattern hold for all years and for both males and females?
  2. Is it likely that this correlation also involves causation? Explain.


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