Economy excel project

Excel Practice 2

Alexa Mancillas

ECON 261-1001

Professor Assané

Spring 2013

Recently, we students have been urged to obtain college degrees and gain

experience in our fields of study to ensure that we get well-paying jobs. But how

exactly do those details affect the wages we are paid? Do other variables have

an effect on our wages? With the data provided, we will analyze the descriptive

statistics of each variable—Hourly Wage (H. wage), Education, Experience,

Female, and Union. We will calculate the mean, standard deviation, minimum,

and maximum values of each variable; calculate the correlation coefficient

between H. wage, Education, and Experience; and graph the relationships

between H. wage and Education, and between H. wage and Experience. Next,

for male and female workers, we will calculate the mean and standard

deviation for H. wage, Education, Experience, and Union. We will analyze the

average difference for each variable. Finally, for union and non-union workers,

we will calculate mean and standard deviation for H. wage, Education,

Experience, and Female. We will then analyze the average differences for each

variable.

Table 1: Summary Statistics for All Variables

According to

Table 1, the

average hourly

wage received

by workers is

$9.01 with a

standard

deviation of

$4.90. The minimum and maximum hourly wages received by workers are $2.01

and $26.29 respectively. The average years of education a worker has received

is 13.09 years with a standard deviation of 2.50 years. The minimum and

maximum years of education received by workers are 6.00 and 18.00 years

respectively. The average experience of workers is 17.75 years with a standard

deviation of 12.14 years. The minimum and maximum years of experience

workers have are 0.00 years and 49.00 years respectively. Approximately 46%, or

243, of these workers are female, and approximately 18%, or 97, are union

members.

Table 2: Correlation Coefficients

Table 2 shows us that the

correlation coefficient

between H. wage and

Education is 0.41, indicating a

positive but weak relationship

between the two variables. The correlation coefficient of 0.11 indicates a

positive but weak relationship between H. wage and Experience as well. The

correlation coefficient between Education and Experience is -0.32. This indicates

a weak, negative relationship between the two variables.

Figure 1: Scatter plot illustrating relationship between H. wage and Education

Variables Mean Standard

Deviation Minimum Maximum

H. wage 9.01 4.90 2.01 26.29

Education 13.09 2.50 6.00 18.00

Experience 17.75 12.14 0.00 49.00

Female 0.46 0.50 0.00 1.00

Union 0.18 0.39 0.00 1.00

Variables H. wage Education Experience

H. wage 1

Education 0.41 1

Experience 0.11 -0.32 1

Although the scatter

plot in Figure 1 illustrates

a weak relationship

between the two

variables, the trendline

is consistent with the

intuition that people

with more years of

education tend to be

paid higher hourly

wages.

Figure 2: Scatter plot illustrating relationship between H. wage and Experience

The scatter plot in

Figure 2 is consistent

with the intuition that

people with more

experience in their field

of work tend to receive

higher hourly wages;

although, this

relationship is weak.

Table 3: Summary Statistics for Male and Female Workers

Variables

Male Workers Female Workers Average

Difference Mean Standard

Deviation Mean

Standard

Deviation

H. wage 10.08 5.27 7.74 4.10 2.34

Education 13.16 2.55 13.01 2.44 0.14

In Table 3, it is

shown that the

average hourly

wage of male workers is $10.08 with a standard deviation of $5.27. Female

workers are shown to have an average hourly wage of $7.74 with a standard

deviation of $4.10. The average years of education male workers have received

is 13.16 years with a standard deviation of 2.55 years. Female workers have

received an average of 13.01 years of education with a standard deviation of

2.44 years. Male workers have an average of 16.64 years of experience with a

standard deviation of 11.69 years, while female workers have an average of

19.04 years of experience with a standard deviation of 12.55 years. 24% of male

workers and 12% of female workers are shown to be union members.

From Table 3, we can conclude that male workers receive approximately $2.34

more in hourly wages than female workers make. This could be because of

gender discrimination in the workplace. It could also be because, physically,

men tend to be stronger than women; therefore, they are able to do more

arduous tasks.

Table 4: Summary Statistics for Union and Non-Union Workers

According

to Table 4,

the average

hourly wage

received by

union

workers is

$10.80 with

a standard deviation of $4.56. Non-union workers receive an average of $8.60

per hour with a standard deviation of $4.89. Union workers have an average of

12.89 years of education with a standard deviation of 2.64 years. Non-union

workers are shown to have an average of 13.14 years of education with a

standard deviation of 2.46 years. In years of experience, union workers have an

average of 20.94 years with a standard deviation of 12.59 years, whereas non-

union workers have an average of 17.03 years with a standard deviation of 11.93

years. Table 4 also shows that 29% of union workers and 50% of non-union

workers are female.

From Table 4, we can conclude that, on average, union workers make $2.19

more in hourly wages than non-union workers make. This is mainly due to the

fact that union workers are able to negotiate their wages as part of their

contract.

Experience 16.64 11.69 19.04 12.55 -2.40

Union 0.24 0.43 0.12 0.32 0.12

Variables

Union Workers Non-Union Workers Average

Difference Mean Standard

Deviation Mean

Standard

Deviation

H. wage 10.80 4.56 8.60 4.89 2.19

Education 12.89 2.64 13.14 2.46 -.025

Experience 20.94 12.59 17.03 11.93 3.90

Female 0.29 0.46 0.50 0.50 -.021

Overall, we can conclude that factors such as education, experience, gender,

and union membership have an influence on the hourly wages a worker is paid;

although, it is shown to be a weak influence.