Selection Bias: Will You Make More Going to a Private University?

MIT’s Josh Angrist returns from his mountaintop meditation to guide us in our next econometrics lesson: selection bias! Graduates of private universities make 14% more than graduates of public universities. Does that mean attending a private universities causes your wages to go up? In this video, Master Joshway shows how randomized trials and regression can be used to address this question.

Think econometrics is boring? So it was once, but will be no more! Skipping theoretical tedium, we use real empirical questions to bring the numbers to life. Does an expensive private university education pay off with higher earnings? Does health insurance really make you healthier? Does legal drinking cost lives?

Try out our practice questions:

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