The file hwage.xlsx contains subset of data used by labor economist Tom Mroz. The variables with...

  

Transcribed Image Text:

The file hwage.xlsx contains subset of data used by labor economist Tom Mroz. The variables with which we are concerned are HW = husband's wage in 2006 dollars HE = husband's education attainment in years HA = husband's age CIT = a variable equal to one if living in a large city, otherwise zero (a) Estimate the model HW = B, + B,HE + B,HA+ e What effects do changes in the level of education and age have on wages? (computer output (2), effects (1.5+1.5)) (b) Does RESET suggest that the model in part (a) is adequate? a = 5% (3 points) (c) Add the variables HE? and HA? to the original equation and re-estimate it. Describe the effect that age have on wages in this newly estimated model (computer output (1), effect (3) (d) Does RESET suggest that the model in part (c) is adequate? a = 5% (3 points) The file hwage.xlsx contains subset of data used by labor economist Tom Mroz. The variables with which we are concerned are HW = husband's wage in 2006 dollars HE = husband's education attainment in years HA = husband's age CIT = a variable equal to one if living in a large city, otherwise zero (a) Estimate the model HW = B, + B,HE + B,HA+ e What effects do changes in the level of education and age have on wages? (computer output (2), effects (1.5+1.5)) (b) Does RESET suggest that the model in part (a) is adequate? a = 5% (3 points) (c) Add the variables HE? and HA? to the original equation and re-estimate it. Describe the effect that age have on wages in this newly estimated model (computer output (1), effect (3) (d) Does RESET suggest that the model in part (c) is adequate? a = 5% (3 points)

Answer rating: 100% (QA)

Solution The estimated model is HW 81236 21933HE 01997... View the full answer