How would you control for these person-specific andtime-specific effects in a panel data regression? d) Can theregression be used to estimate the effect of gender on anindividual’s earnings? Explain. e) Can the regression be used toestimate the effect of the national unemployment rate on anindividual’s earnings? Explain. f) In the context of the regressionyou suggested for part (c), explain why the regression error for agiven individual might be serially correlated. g) In the context ofthe regression you suggested for part (c), explain why theregression error across individuals for a given point in time mightbe correlated.
