********************************************************************************;
*
*       Problem Set #3
*
********************************************************************************;
# delimit ;
clear;
cap log close;

********************************************************************************;
*
*       Specify the output file
*
********************************************************************************;
log using Problemset3.log,replace;
set more off;

********************************************************************************;
*
*       Read in and summarize the data
*
********************************************************************************;
use     CPS04.dta;
describe;
summarize ahe age;

********************************************************************************;
*
*       Estimate the model for question E4.1
*
********************************************************************************;
reg     ahe age,r;
scalar  Bob = _b[_cons] + 26*_b[age];
scalar  Alex = _b[_cons] + 30*_b[age];
scalar  list;

********************************************************************************;
*
*       Estimate the model for question E5.1c
*
********************************************************************************;
reg     ahe age if bachelor==0,r;

********************************************************************************;
*
*       Estimate the model for question E5.1c
*
********************************************************************************;
reg     ahe age if bachelor==1,r;

log close;
*clear;
*exit;