Focussing on the notion of ‘returns to education’, and without resorting to regression models, use Stata and the available data to present evidence to support or disprove the politician’s hypothesis

A politician has approached you under some concern that he believes women and ethnic groups are not
benefitting enough from education. The politician has data collected from the labour force, but is not
literate with economic or econometric theory.
a) Focussing on the notion of ‘returns to education’, and without resorting to regression
models, use Stata and the available data to present evidence to support or disprove the
politician’s hypothesis. (50%)
b) In examining the existing academic literature, do your results match what you expected?
(you must show that your expectations are informed by previous research) (20%)
c) Referring to the theoretical model of individual educational choice, what do your results
suggest for the level of education sought by women and ethnic groups. (30%)
All Stata work must be copied and pasted in the form of a complete DO file in an appendix at the end of
the document. Failure to include a Stata appendix corresponding to your work will carry an automatic
penalty of 25% of the available marks.
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