Question: C7.7 Use the data in WAGE1.RAW for this exercise. NING SRO (i) Use equation (7.18) to estimate the gender differential when educ 12.5. Compare this

C7.7 Use the data in WAGE1.RAW for this exercise. NING SRO (i) Use equation (7.18) to estimate the gender differential when educ 12.5. Compare this with the estimated differential when educ = 0. (ii) Run the regression used to obtain (7.18), but with female-(educ - 12.5) replacing female educ. How do you interpret the coefficient on female now? (iii) Is the coefficient on female in part (ii) istically significant? Compare this with (7.18) and comment.

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