Question: 1.5 Interaction among regressors. Consider the wage regression model given in Table 1.3. Suppose you decide to add the variable education.experience, the product of the
1.5 Interaction among regressors. Consider the wage regression model given in Table 1.3. Suppose you decide to add the variable education.experience, the product of the two regressors, to the model. What is the logic behind introducing such a variable, called the interaction variable, to the model? Re-estimate the model in Table 1.3 with this added variable and interpret your results.
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