will be interpreted similarly to the previous section. LSLF is included in order to control for the effects of the already existing low skilled labor force. Also, LFD was excluded due to multi-collinearity (Appendix 1). The equations being studied here are (7), (8) and (9): OLS C ISS ISS(-1) LSLF R2 - 0.990 - 0.991 0.991 There are two stark differences when the above models are compared to the ones in the previous sections. First, the constant is insignificant, which is the opposite of what was found before. Second, the sign of ISS(-1) changed, meaning the lagged value of the immigration supply shock now positively affects the dependent variable. Other than those two differences, the results from these regression models are largely similar to the previous models. ISS and ISS(-1) are still highly insignificant at the 5% level, meaning immigration has no significant effect on the employability of low skilled labor. Again, it is necessary to check for heteroskedasticity and autocorrelation, and the White and Breusch-Godfrey tests are run once again. Appendix 4 includes the details for the tests run for each model. For model (7), we reject the null for both tests, concluding that the model is both serially correlated and heteroskedastic. However, for models (8) and (9), there exists no heteroskedasticity yet there is still autocorrelation. As a result, a HAC regression is produced one more time for the above models: HAC C ISS ISS(-1) LSLF R2
will be interpreted similarly to the previous section. LSLF is included in order to control for the effects of the already existing low skilled labor force. Also, LFD was excluded due to multi-collinearity (Appendix 1). The equations being studied here are (7), (8) and (9): OLS C ISS ISS(-1) LSLF R2 - 0.990 - 0.991 0.991 There are two stark differences when the above models are compared to the ones in the previous sections. First, the constant is insignificant, which is the opposite of what was found before. Second, the sign of ISS(-1) changed, meaning the lagged value of the immigration supply shock now positively affects the dependent variable. Other than those two differences, the results from these regression models are largely similar to the previous models. ISS and ISS(-1) are still highly insignificant at the 5% level, meaning immigration has no significant effect on the employability of low skilled labor. Again, it is necessary to check for heteroskedasticity and autocorrelation, and the White and Breusch-Godfrey tests are run once again. Appendix 4 includes the details for the tests run for each model. For model (7), we reject the null for both tests, concluding that the model is both serially correlated and heteroskedastic. However, for models (8) and (9), there exists no heteroskedasticity yet there is still autocorrelation. As a result, a HAC regression is produced one more time for the above models: HAC C ISS ISS(-1) LSLF R2