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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 | |