zwages1”

Homework #1 A hard copy is due in class on Tuesday, February 9, 2016Thursday February 11, 2016. Late homeworks are not accepted. If you cannot make it to lecture, you should arrange to hand in your homework ahead of time. For data, you must use the August 2015 CPS data set. Several questions refer to the Basic Sample: persons whose age is in the 21-27 (inclusive) range, who are working at least 40 hours per week. 1. Consider the Basic Sample only. Create standardizations (z-scores) of for the variables: wages, age, education, and hours. Display the resulting histograms and statistics next to the unstandardized versions. Describe the main ways the pairs of graphs are similar, and the main ways they are different. 2. Start with the entire data set and construct the variable “zwages1” by (i) restricting your sample to the Basic Sample, and then (ii) forming the z-scores of the wages. Now start with the entire data set and construct “zwages2” by (i) forming the z-scores of the wages, and then (ii) restricting your sample to the Basic Sample. Compare the resulting histogram and statistics, and compare the first observation in the two cases. Explain the differences. 3. Determine the following proportions of persons in the Basic Sample: a. Women; b. Persons making over 50k; c. Persons who are women making over 50k; d. Persons who are women or who make over 50k; e. The proportion of women among the persons making over 50k; f. The proportion of women who make over 50k; [Hint:Construct the relevant binary (indicator) variables, and them both, and then use N-way tabulation. Intuitively, you will be calculating Pr[A], Pr[B], Pr[A and B], Pr[A or B], Pr[A|B], and Pr[B|A].] 4. The 2016 federal poverty level for family of size 1 (i.e., just you living alone) is $11,770. For a family of size 2 or 3 it is $15,930 and $20,090 respectively. Construct a graph that displays the breakdown of people’s wages (ignoring other possible sources of income) in terms of positive and negative percentages (or proportions) above or below the poverty level for a family of size 1. Assuming that each individual is the sole earner for their family, do the same for families of size 2 and 3 (i.e., assume each individual is the sole earner for a family of the appropriate size). Repeat this, but for the Basic Sample only. 5. Restrict your sample to people working at least 40 hours per week (no other constraints). Construct and compare the “histogram and statistics” of wages of 20-25 year olds, 26-35 year olds, 36-45 year olds, 46 – 55 year olds, 56 – 65 year olds, 66 – 70 year olds, and 71+ year olds. What do you notice about wages? Give a short explanation of what you think accounts for the differences in wages. [Copy and paste your histograms and statistics onto a single sheet of paper.] ################################# 2015 AUGUST CPS CODE BOOK ################################# STATE Geography-FIPS state code With the following Ranges: 1 AL 2 AK 4 AZ 5 AR 6 CA 8 CO 9 CT 10 DE 11 DC 12 FL 13 GA 15 HI 16 ID 17 IL 18 IN 19 IA 20 KS 21 KY 22 LA 23 ME 24 MD 25 MA 26 MI 27 MN 28 MS 29 MO 30 MT 31 NE 32 NV 33 NH 34 NJ 35 NM 36 NY 37 NC 38 ND 39 OH 40 OK 41 OR 42 PA 44 RI 45 SC 46 SD 47 TN 48 TX 49 UT 50 VT 51 VA 53 WA 54 WV 55 WI 56 WY METROSIZE Metropolitan Statistical Area Size With the following Ranges: 0 Not Identified or NonMetropolitan 2 100,000 - 249,999 3 250,000 - 499,999 4 500,000 - 999,999 5 1,000,000 - 2,499,999 6 2,500,000 - 4,999,999 7 5,000,000+ METROAREA Combined Statistical Area FIPS Code With the following Ranges: 000 Nonmetropolitan or Not Identified 118 Appleton-Oshkosh-Neenah, WI 176 Chicago-Naperville-Michigan City, IL-IN-WI (part) 178 Cincinnati-Middletown-Wilmington, OH-KY-IN (part) 184 Cleveland-Akron-Elyria, OH (part) 206 Dallas-Fort Worth, TX (part) 212 Dayton-Springfield-Greenville, OH (Part) 216 Denver-Aurora-Boulder, CO 220 Detroit-Warren-Flint, MI 260 Fresno-Madera, CA 266 Grand Rapids-Muskegon-Holland, MI (part) 268 Greensboro-Winston-Salem-High Point, NC (part) 272 Greenville-Anderson-Seneca, SC (part) 288 Houston-Baytown-Huntsville, TX (part) 290 Huntsville-Decatur, AL 294 Indianapolis-Anderson-Columbus, IN (part) 304 Johnson City-Kingsport-Bristol, TN-VA (part) 348 Los Angeles-Long Beach-Riverside, CA 356 Macon-Warner-Robins-Fort Valley, GA (part) 376 Milwaukee-Racine-Waukesha, WI 378 Minneapolis-St. Paul-St. Cloud, MN-WI (part) 408 New York-Newark-Bridgeport, NY-NJ-CT-PA (part) 428 Philadelphia-Camden-Vineland, PA-NJ-DE-MD (part) 450 Raleigh-Durham-Cary, NC (part) 472 Sacramento–Arden-Arcade–Truckee, CA-NV (part) 482 Salt Lake City-Ogden-Clearfield, UT (part) 488 San Jose-San Francisco-Oakland, CA 500 Seattle-Tacoma-Olympia, WA 548 Washington-Baltimore-Northern Virginia, DC-MD-VA-WV (part) 715 Boston-Worchester-Manchester, MS-NH-CT-ME (part) 720 Bridgeport-New Haven-Stamford, CT HOUSEHOLD Household-total # of members With the following Ranges: 0:16 Range EDUCATION Demographics-highest level of school completed With the following Ranges: -1 Not in Universe 31 Less Than 1st Grade 32 1st,2nd,3rd Or 4th Grade 33 5th Or 6th Grade 34 7th Or 8th Grade 35 9th Grade 36 10th Grade 37 11th Grade 38 12th Grade No Diploma 39 High School Grad-Diploma Or Equiv (ged) 40 Some College But No Degree 41 Associate Degree-Occupational/Vocationl 42 Associate Deg.-Academic Program 43 Bachelor's Degree(ex:ba,ab,bs) 44 MASTER'S DEGREE(EX:MA,MS,MEng,MEd,MSW) 45 Professional School Deg(ex:md,dds,dvm) 46 DOCTORATE DEGREE(EX:PhD,EdD) HOURS Labor Force-# hours actually worked at all jobs With the following Ranges: -1 Not in Universe 0:198 Range HISPANIC Demographics- hispanic/non-hispanic origin With the following Ranges: 1 Hispanic 2 Non-Hispanic MARITAL Demographics-marital status With the following Ranges: -1 Not in Universe 1 Married - Spouse Present 2 Married-Spouse Absent 3 Widowed 4 Divorced 5 Separated 6 Never Married SEX Demographics-sex With the following Ranges: 1 Male 2 Female ASIAN Demographics Detailed Asian Subgroup With the following Ranges: -1 Not in Universe 1 Asian Indian 2 Chinese 3 Filipino 4 Japanese 5 Korean 6 Vietnamese 7 Other Asian AGE Demographics - age topcoded at 85, 90 or 80 (see full description) With the following Ranges: 0:90 Range RACE Demographics- race of respondent With the following Ranges: 01 White only 02 Black only 03 American Indian, Alaskan Native Only 04 Asian only 05 Hawaiian/Pacific Islander Only 06 White-Black 07 White-AI 08 White-Asian 09 White-HP 10 Black-AI 11 Black-Asian 12 Black-HP 13 AI-Asian 14 AI-HP 15 Asian-HP 16 W-B-AI 17 W-B-A 18 W-B-HP 19 W-AI-A 20 W-AI-HP 21 W-A-HP 22 B-AI-A 23 W-B-AI-A 24 W-AI-A-HP 25 Other 3 Race Combinations 26 Other 4 and 5 Race Combinations WEEKLYWAGES Earnings-weekly earnings,amount-recode With the following Ranges: -1 In Universe, Met No Conditions To Assign 0.0:2884.61 Range