# ECO 440/640 — Problem Set 5

For your assignment this week, I want you to answer the question “Does a year of education increase wages more for women than for men?”

### Data

• Use the CPS ASEC data from ipums.org. It is fine to pick just one year (2018 is a good year).
• You should use the logarithm of wage income. You will need to construct a measure of hourly wage using a combination of variables like incwage, uhrsworkly, and wkswork1.
• Read the descriptions of the variables.
• On IPUMS, before you "submit extract", change the "data format" to csv.
• Pay special attention to codes for "missing" or "not in universe" (NIU). Convert these to "NA" before doing anything with those variables or you will see a bunch of people with \$9999999 in income. This information is usually under "codes" for each variable on IPUMS.
• Try to focus on full-time workers (this depends on both hours worked per week and number of weeks worked per year) that are adults of working age.

I put together the following variables for you. They are the same length, and you can use them to convert the categories in EDUC to years of schooling. You will need to put them in a data frame (as I did in the third line of code below) and merge that data frame with your main data frame (again as I did in the fourth line of code below). You will need to change the name of the "cps" data frame to whatever you named yours.

EDUC = c(999,0,1,2,10:14,20:22,30:32,40,50,60,70:73,80,81,90:92,100,110,111,120:125)
school = c(NA,NA,NA,0,2.5,1:4,5.5,5:6,7.5,7:11,rep(12,4),13,rep(14,4),15,16,16,17,rep(18,4),20)
edyears = tibble(EDUC, school)
cps2 = left_join(cps, edyears, by="EDUC")