investigation into the hourly You are conducting an econometric wage rates of male and female employees....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
investigation into the hourly You are conducting an econometric wage rates of male and female employees. Your particular interest is in comparing the determinants of wage rates for female and male workers. The sample data consist of a random sample of observations on 526 paid employees, 252 of whom are females and 274 of whom are males. The sample data provide observations on the following variables: W S A T F =hourly wage rate, measured in dollars per hour = number of years of formal education completed, in years = age, in years; = Firm tenure of employee, in years = 1 if employee is female and =0 if employee is male The following model is proposed: In W3₁ +3₂S+ 3₂A +3₂A² +3₂T+3 (S-T) + 3₂ F +38 (F-S) +3, (F A)+3₁(F-A²)+3₁(F-T) + 32 (F.S.T) +U, Where the ß denote unknown parameters and U is an error term. It is assumed that all the classic assumptions of the multiple regression model hold, including homoskedasticity. The observed sample provides the following estimates (standard errors of each estimate in parenthesis), In W = -0.5667 +0.05937 S+0.07980 A-0.00093 A² -0.01057 T (0.2381) (0.01104) (0.01216) (0.00015) (0.01128) +0.00227 (ST) + 0.03593 F +0.01684(F-S)-0,03847 (F-A) (0.00087) (0.3373) (0.01€84) (0.01715) +0.000422(F-A²) +0.01850 (F-T) -0.002107 (F-S-T). (0.000219) (0.02€52) (0.002187) The corresponding residual sum of squares (RSS) and the total sum of squares (SST) of the n=526 observations are RSS=U = 80.57 and SST = (In W; - In W)² = 148.33. i=1 im 1 Required: a) Use the estimation results to compute the OLS estimates of the slope coefficients of the regressors S; A and T when only the 274 observations corresponding to male employees are used. Repeat the exercise when only the 252 observations corresponding to female employees are used. b) Write the expression (or formula) for the marginal effect of A over In W for male employees in terms of the unknown parameters, implied by regression equation of in Repeat the exercise for female employees. Provide the null hypothesis that the marginal effect of A on InW for male employees is equal to the marginal effect of A on In W for female employees. Provide.also the expression for the alternative hypothesis. Give the equation for the restricted regression implied by Ho: The restricted OLS estimation provides RSS= 81:7242: Use this information, together with the information provided in the problem formulation, to calculate the test statistic, indicating which is its approximate distribution under the null hypothesis. Establish a decision rule, using a significance level of 5%, and the corresponding conclusion on the inference provided by the test. investigation into the hourly You are conducting an econometric wage rates of male and female employees. Your particular interest is in comparing the determinants of wage rates for female and male workers. The sample data consist of a random sample of observations on 526 paid employees, 252 of whom are females and 274 of whom are males. The sample data provide observations on the following variables: W S A T F =hourly wage rate, measured in dollars per hour = number of years of formal education completed, in years = age, in years; = Firm tenure of employee, in years = 1 if employee is female and =0 if employee is male The following model is proposed: In W3₁ +3₂S+ 3₂A +3₂A² +3₂T+3 (S-T) + 3₂ F +38 (F-S) +3, (F A)+3₁(F-A²)+3₁(F-T) + 32 (F.S.T) +U, Where the ß denote unknown parameters and U is an error term. It is assumed that all the classic assumptions of the multiple regression model hold, including homoskedasticity. The observed sample provides the following estimates (standard errors of each estimate in parenthesis), In W = -0.5667 +0.05937 S+0.07980 A-0.00093 A² -0.01057 T (0.2381) (0.01104) (0.01216) (0.00015) (0.01128) +0.00227 (ST) + 0.03593 F +0.01684(F-S)-0,03847 (F-A) (0.00087) (0.3373) (0.01€84) (0.01715) +0.000422(F-A²) +0.01850 (F-T) -0.002107 (F-S-T). (0.000219) (0.02€52) (0.002187) The corresponding residual sum of squares (RSS) and the total sum of squares (SST) of the n=526 observations are RSS=U = 80.57 and SST = (In W; - In W)² = 148.33. i=1 im 1 Required: a) Use the estimation results to compute the OLS estimates of the slope coefficients of the regressors S; A and T when only the 274 observations corresponding to male employees are used. Repeat the exercise when only the 252 observations corresponding to female employees are used. b) Write the expression (or formula) for the marginal effect of A over In W for male employees in terms of the unknown parameters, implied by regression equation of in Repeat the exercise for female employees. Provide the null hypothesis that the marginal effect of A on InW for male employees is equal to the marginal effect of A on In W for female employees. Provide.also the expression for the alternative hypothesis. Give the equation for the restricted regression implied by Ho: The restricted OLS estimation provides RSS= 81:7242: Use this information, together with the information provided in the problem formulation, to calculate the test statistic, indicating which is its approximate distribution under the null hypothesis. Establish a decision rule, using a significance level of 5%, and the corresponding conclusion on the inference provided by the test.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these economics questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A W8x10, A36 steel is used as a simply supported beam uniformly loaded over a span of 6.6 m. If lateral supports are located at third points, calculate the design moment capacity about the major...
-
The human resources manager of DataCom, Inc., wants to predict the annual salaries of given employees using the potential explanatory variables in the file P10_05.xlsx. a. Estimate an appropriate...
-
As manager of a local pizza parlor, you want to develop a balanced scorecard so you can more effectively monitor the restaurants performance. Required a. Propose at least two goals for each...
-
Siegfried Basset is 65 years of age and has a life expectancy of 12 more years. He wishes to invest $20,000 in an annuity that will make a level payment at the end of each year until his death. If...
-
Is there any systematic tendency for part-time college faculty to hold their students to different standards than do full-time faculty? The article "Are There Instructional Differences Between...
-
Poisson ratio is defined as: (a) Longitudinal stress/longitudinal strain (b) Longitudinal stress/lateral stress (c) Lateral strain/longitudinal strain (d) Lateral stress/lateral strain
-
Apply the value chain model to a video game retail company, such as EB Games (www.EBGames.com). What is its competitive strategy? Describe the tasks EB Games must accomplish for each of the primary...
-
Differentiate between accelerator principle of investment and investment multiplier. Explain the determinants of induced investment in an economy. Given C=a+bY, explain "a" and "b" and then sketch...
-
To: [Your name] From: Supervising Attorney Re: United States v. Canter; armed bank robbery with a dangerous weapon We have been appointed to represent Eldon Canter in the case of United States v....
-
of Variation SS df MS Fratio Between groups 3 Within groups 3 comma 072 Total 3 comma 498 35 a How many different populations are being considered in this analysis There are 4 different populations
-
< eBook Show Me How Video High-Low Method Liberty Inc. has decided to use the high-low method to estimate costs. The data for various levels of production are as follows: Units Produced Total Costs...
-
What is meant by a partial defence and explain the effect that successfully pleading a partial defence for murder has on a defendants liability and sentence?
-
There is no single right answer, but whatever answer you do give, justify why you think your assumptions are "reasonable". Making reasonable assumptions on processor speed (state what they are), what...
-
explain WHY the answer is the way it is, DONT *only* type the answer, I need to know HOW you got it PLEASE! 6.3.6 Print Odds Submit + Continue Save Output Test Cases Docs Assignment Grade More 1...
-
Write a method that turns some text into something Porky Pig would say. To do that, you just need to add "Bdap bdap bb " to before the given text. For example, if you called porkyPig("that's all...
-
PLEASE SHOW DETAILED SOLUTION THANKS! Problem 2.47 The inverted U-tube manometer is used to measure the difference in pressure between water flowing in the pipes at A and B. P = 1000 kg/m. (Figure 1)...
-
The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to...
-
1. Did Johnson Controls fetal-protection policy discriminate against women? 2. JCIs fetal-protection policy was implemented only after eight employees became pregnant while maintaining blood lead...
-
A police officer and an alleged bank robber were hospitalized after exchanging gunfire. Hospital technician Cheryl James worked on both men. After the police officer died she posted on Facebook that...
-
Lynn Breininger filed suit under Section 301 against his union, the Sheet Metal Workers' Union, asserting that the union violated its duty of fair representation to him by discriminating against him...
-
A project under consideration has a 10-year projected life. The initial investment for the project is estimated to have a mean of \(\$ 10,000\) and a standard deviation of \(\$ 1,000\). The annual...
-
True or False: In determining the optimum replacement interval, it is necessary to assume negligible salvage values.
-
Match the terms in the first column with an appropriate definition from the second column. Terms (a) Breakeven analysis (b) Sensitivity analysis (c) Risk analysis Definitions (1) Determining how the...
Study smarter with the SolutionInn App