To answer this question, we will use Stata and the dataset "Mexico.dta". This dataset contains 1000 randomly selected Mexican workers in the year 2010 (from the Mexican population census in that same year). Write up the answers to a)-e) below in the same document you used for Questions 1 and 2. In addition, also attach the do file that you used to answer the following questions.
a) Open the dataset in Stata. Visualize and export a table that lists the number of observations, the mean, the standard deviation, the minimum value and the maximum value for each of the variables in the dataset (edit and include the table in your written up answer). Briefly describe what is the fraction of women in the dataset, what is the fraction of workers in agriculture, manufacturing and services in the data, and what is the fraction of workers speaking an indigenous language (an indicator of a person's indigenous descent in Mexico).
b) Use the data to obtain a point estimate for the average gender gap in log hourly wages in Mexico in 2010. Export your result in a regression table (that you can edit and include in your written up answer), and comment on the interpretation and statistical significance of your result.
c) Use the data and OLS regressions to explore popular claims that this observed average gender wage gap in Mexico is purely due to the fact that women are more likely to be: i) less educated, ii) younger, iii) of indigenous descent which the Mexican labor market discriminates against, iv) working in sectors with lower wages, v) working in states with lower wages, and vi) working farther away from the US export market. Export your analysis appending the same regression table, and comment on the interpretation and statistical significance of your results.
d) Investigate to what extent the returns to schooling differ between men and women in Mexico. Export your analysis appending the same regression table, and comment on the interpretation and statistical significance of your results.
e) Create and export a graph in which you plot the estimated functional forms for how log wages on average relate to years of schooling for both men and women in Mexico [Hint: use Stata's post-estimation command "predict" to create predicted wages for the sample of men and women; then use the "twoway" command to plot these two linear functions in a diagram].