Use the cps09mar data set described in Section 3.22 and available on the textbookwebsite.

Take the sub-sample used for equation (3.49) (see Section 3.25) for data construction)

(a) Estimate equation (3.49) and compute the equation R2 and sumof squared errors.

(b) Re-estimate the slope on education using the residual regression approach. Regress log(wage) on experience and its square, regress education on experience and its square, and the residuals on the residuals. Report the estimates from this final regression, along with the equation R2 and sum of squared errors. Does the slope coefficient equal the value in (3.49)? Explain.

(c) Are the R2 and sum-of-squared errors from parts

(a) and

(b) equal? Explain.