10 November 2021
I’m now a third-year Economics student and the module I enjoyed the most was in my second trimester of the second year: Applied Econometrics.
I had the module introduction to econometrics in the first semester of the same year and I realised the importance of this tool for an economist. The module consisted of lectures to learn statistical techniques and seminars to practically apply them, I enjoyed every week and the teacher was very professional and always happy to answer questions.
The software utilised in the module was Stata 14 which is a statistical software to analyse variables in the population; we captured a sample of 1000 people having different characteristics in terms of salary, years of education, ethnicity, years of working experience, married or not, age and many more. Successively through statistical hypothesis, we were able to generate a prediction on the population.
In my case, I notice that the years of education have a high impact on the monthly salary, consequently, I focused on it. Through the software it was possible to determine how much the two variables are correlated and see for example, how one more year of education will increase the monthly earnings.
After the analysis part, I investigated which policies have to be applied to increase the salary, it was a very exciting and creative task because I felt like a policymaker; I came up with different theories to help those from lower salary backgrounds stay in education longer to increase their chances of success. For example:
This module linked all my passions together: mathematics, statistics, and sociology. It helped me realise that studying something that I enjoyed this much helped my learning and applying of econometrics. The reward was an extra bonus, helping me secure my love for the subject even more, as my grade was 95/100!