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mixtape/Do/collider_discrimination.do
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clear all | |
set obs 10000 | |
* Half of the population is female. | |
generate female = runiform()>=0.5 | |
* Innate ability is independent of gender. | |
generate ability = rnormal() | |
* All women experience discrimination. | |
generate discrimination = female | |
* Data generating processes | |
generate occupation = (1) + (2)*ability + (0)*female + (-2)*discrimination + rnormal() | |
generate wage = (1) + (-1)*discrimination + (1)*occupation + 2*ability + rnormal() | |
* Regressions | |
regress wage discrimination | |
regress wage discrimination occupation | |
regress wage discrimination occupation ability | |