Development and Applied Economics · Econometrics
Test whether education and earnings are related
Use a public survey dataset to estimate how much an extra year of schooling relates to earnings.
- DifficultyAdvanced
- Estimated time2–4 weeks
- Budget₹0
- ClassCollege
- TeamSolo or up to 2
- You needComputer only
Prerequisites: None beyond your class work
Original · by TechnifyedData AnalysisResearch ProjectFree to doComputer onlyResearch orientedWell documented
Overview
Use a public survey dataset to estimate how much an extra year of schooling relates to earnings.
Why build this?
It is the classic first econometrics exercise and teaches the gap between correlation and cause.
What you will learn
- How to run and read a regression
- What controlling for a variable means
- Why omitted variables bias results
Skills you will use
Materials and tools
- A public household survey dataset
- Statistical software
Tools and software
Step-by-step roadmap
Start
You will finish with: regression tables and a careful interpretation.
- 1
Prerequisites
Nothing special to know first. Then collect the 2 items in the materials list.
- 2
Learn
- How to run and read a regression
- What controlling for a variable means
- Why omitted variables bias results
- 3
Plan
Write the research question, who or what you will study, how many, and the exact questions or measures.
- 4
Build
- Load the data and select working adults.
- Plot earnings against years of schooling.
- Run a regression of log earnings on schooling.
- Add age and gender as controls.
- Explain why this is not proof of cause.
- 5
Test
Check a sample of your data by hand, and ask whether another explanation fits your findings equally well.
- 6
Document
Keep the raw responses or data safe, anonymise names, and build the tables and charts. Report structure
- 7
Present
State the question, the method in one line, the two or three main findings and their limits. Presentation structure · Viva questions
- 8
Publish
Share a short paper or poster; offer a summary to the people who took part.
Expected outcome
Regression tables and a careful interpretation.
Other versions of this project
Beginner version
Compare average earnings by education level in a table.
Advanced version
Estimate separately for men and women and for urban and rural workers.
Make this project better
- BasicCompare average earnings by education level in a table.
- This projectTest whether education and earnings are related
- AdvancedEstimate separately for men and women and for urban and rural workers.
Research mode
Text marked "You write this" is a prompt for your own work; everything else is specific to this project.
- Research question
- You write thisOne question you can answer with data, narrow enough to finish in the time you have.
- Hypothesis
- You write thisWhat you expect to find, and why.
- Variables
- You write thisWhat you change or compare, what you measure, and what you hold constant.
- Methodology
- You write thisDescribe the method in enough detail that someone else could repeat it: sample, tools, procedure.
- Data collection
- You write thisSay what you will record, how many times, and how you will keep the records safe.
- Analysis
- You write thisChoose the table, chart or test that answers the question; report averages with their spread.
- Limitations
- You write thisList what could have affected the result: small sample, instrument limits, things you could not control.
Literature review
Find five to eight sources (your textbook, review articles, reports) and note what each says about your question. Group them by idea, not one after another, and end with what is still not known.
References
List every source you used in one style throughout (author, year, title, where it was published, link and the date you opened it).
Working as a team
Solo or up to 2. Suggested roles:
Report and presentation
Report structure
- Title
- Abstract
- Introduction and research question
- Review of what is already known
- Method: sample, tools, procedure
- Findings (tables and charts)
- Discussion
- Limitations
- Conclusion and suggestions
- References
- Annexure: questionnaire or data
Presentation structure
- Research question
- Why it matters
- Method and sample
- Finding 1
- Finding 2
- Finding 3
- What it means
- Limitations
- Conclusion
Viva questions
Try answering before you open each one.
What does the coefficient on schooling mean?
The percentage difference in earnings associated with one more year of schooling.
Why is it not causal?
Ability and family background affect both schooling and earnings.
What is a control variable?
A factor held constant so its effect is not confused with the one you study.
Resources
Source and attribution
Original
Written by Technifyed. Free to use for your own school or college project; write the report in your own words. Added 1 Oct 2026.
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