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When Empirically Identifying a Priori Occupational or Industrial Labour Market

Question 4

Multiple Choice

When empirically identifying a priori occupational or industrial labour market segmentation, truncation bias results in which of the following?


A) naturally lower estimated returns to education in the secondary sector
B) a natural equalisation of the estimated returns to education in primary and secondary sectors
C) a clustering of observations in the secondary sector
D) a natural reduction in the returns to human capital in the primary sector

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