Why will the regression give reliable estimates of effects


Problem

In a study of the effect on earnings of education using panel data on annual earnings for a large number of workers, a researcher regresses earnings in a given year on age, education, union status, and the worker's earnings in the previous year using fixed effects regression. Will this regression give reliable estimates of the effects of the regressors (age, education, union status, and previous year's earnings) on earnings? Explain.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why will the regression give reliable estimates of effects
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