Applied Econometrics

Description of Dataset for HW1

Each month the Bureau of Labor Statistics in the U.S. Department of Labor conducts the

“Current Population Survey” (CPS), which provides data on labor force characteristics of the

population, including the level of employment, unemployment, and earnings. Approximately

65,000 randomly selected U.S. households are surveyed each month. The sample is chosen

by randomly selecting addresses from a database comprised of addresses from the most

recent decennial census augmented with data on new housing units constructed after the last

census. The exact random sampling scheme is rather complicated (first small geographical

areas are randomly selected, then housing units within these areas randomly selected); details

can be found in the Handbook of Labor Statistics and is described on the Bureau of Labor

Statistics website (www.bls.gov).

The survey conducted each March is more detailed than in other months and asks questions

about earnings during the previous year. The file HW1 contains the data for 2012 (from the

March 2013 survey). These data are for full-time workers, defined as workers employed more

than 35 hours per week for at least 48 weeks in the previous year. Data are provided for

workers whose highest educational achievement is (1) a high school diploma, and (2) a

bachelor’s degree.

Series in Data Set:

FEMALE: 1 if female; 0 if male

YEAR: Year

AHE : Average Hourly Earnings

BACHELOR: 1 if worker has a bachelor’s degree; 0 if worker has a high school degree

AGE: Age