Suppose that the average worker productivity of manufacturin
Suppose that the average worker productivity of manufacturing firms (avgprod) depends on two factors, average hours of on the job training (avgtrain) and average worker education (avgedu): Suppose the government gives grants to firms with low education workers, and the firms use these grants to train their workers. Would the following regression over- or underestimate the true effect of training on productivity? Explain the reasons for your answer.
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