Is previous work experience as valuable as experience with the current employer? Using your EAEF data set, first regress LGEARN on S, EXP, MALE, ETHBLACK, ETHHISP, and ASVABC. Then define PREVEXP = EXP - TENURE.

The variable TENURE in your data set is the number of years spent working with the current employer. Regress LGEARN on S, PREVEXP, TENURE,

MALE, ETHBLACK, and ETHHISP. The estimates of the coefficients of PREVEXP and TENURE will be different. This raises the issue of whether the difference is due to random factors or whether the coefficients are significantly different. Set up the null hypothesis H0: 81 = 82, where 81 is the coefficient of PREVEXP and 82 is the coefficient of TENURE. Explain why the regression with EXP is the correct specification if H0 is true, while the regression with PREVEXP and TENURE should be used if H0 is false . Perform an F test of the restriction using RSS for the two regressions. Do this for the combined sample and also for males and females separately.