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D 10 1? Iwant to find out the effect of completing a university degree on the la

ID: 1161565 • Letter: D

Question

D 10 1? Iwant 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? O Yes No

Explanation / Answer

"Yes"

If we subtract the two average data of people who have completed their degree and the people who haven't completed their degree we will get a causal data on the difference between the two.