Semiparametric fixed-effects regressions
Note: (a) Baltagi-Li (2002) regression of quarterly state-average wage on ln bracero stock, with state and quarter-by-year fixed effects. (b) Baltagi-Li (2002) regression of monthly stock of ln employed domestic seasonal farm workers on ln bracero stock, with state and month-by-year fixed effects. Both are local linear with Epanechnikov kernel, bandwidth 2 log-points. Dashed lines show 95% confidence interval, clustered by state. Real wage is hourly wage deflated to 1965 US$ by Consumer Price Index.