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I want to find out the effect of completing a university degree on the labor mar

ID: 1161487 • Letter: I

Question

I want to find out the effect of completing a university degree on the labor market outcomes (employment, salary,...) of people. I look through the data and I decide to compare those that completed a university degree to those that did not. If I just subtract the average employment rates, salaries of the group who did not complete a university degree from the respective averages of those who did complete a university degree, would I get a realistic (true) estimate of the causal impact of having a university degree?  

Yes

No

Explanation / Answer

"Yes"

The average employment data of the people who went to a university will be significantly higher than the average data of the people who didn't go to a university. The difference will give a picture of the real difference between competing for university and not.  

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