1. Interpret in words the effect of college on hourly earnings using Column (1). Remember that...

 

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1. Interpret in words the effect of college on hourly earnings using Column (1). Remember that the dependent variable is logarithm of hourly earnings. 2. Consider a man with 16 years of education and 2 years of potential experience who resides in the West. Use the results from Column (2) to estimate the expected change in the hourly earnings associated with an additional year of experience. 3. Consider a man with 16 years of education and 10 years of potential experience who resides in the West. Use the results from Column (2) to estimate the expected change in the hourly carnings associated with an additional year of experience. 4. Explain in words how the effect of an additional year of potential experience on earnings depends on (initial) years of potential experience. You may want to refer to your answers in parts 2 and 3. 5. Does the quadratic model in Column (2) fit the data better than the linear model in Column (1)? Explain. 6. Based on the result in Column (3), predict the effect of a college education on hourly earnings for a woman. In other words, by how much will a woman's hourly earnings change if she receives a college education? Interpret the result in words. 7. Based on the result in Column (3), predict the effect of a college education on hourly earnings for a man. In other words, by how much will a man's hourly earnings change if he receives a college education? Interpret the result in words. 8. Based on the results in Column (3), interpret the coefficient on "CollegerFemale" in words. 9. Based on the result in Column (3), would you conclude that the returns to education (effect of a college education on earnings) are statistically significantly different for men and women? 10. Based on the result in Column (3), would you conclude that the effect of a college education on earnings are economically/meaningfully different in economic terms for men and women? 1. Interpret in words the effect of college on hourly earnings using Column (1). Remember that the dependent variable is logarithm of hourly earnings. 2. Consider a man with 16 years of education and 2 years of potential experience who resides in the West. Use the results from Column (2) to estimate the expected change in the hourly earnings associated with an additional year of experience. 3. Consider a man with 16 years of education and 10 years of potential experience who resides in the West. Use the results from Column (2) to estimate the expected change in the hourly carnings associated with an additional year of experience. 4. Explain in words how the effect of an additional year of potential experience on earnings depends on (initial) years of potential experience. You may want to refer to your answers in parts 2 and 3. 5. Does the quadratic model in Column (2) fit the data better than the linear model in Column (1)? Explain. 6. Based on the result in Column (3), predict the effect of a college education on hourly earnings for a woman. In other words, by how much will a woman's hourly earnings change if she receives a college education? Interpret the result in words. 7. Based on the result in Column (3), predict the effect of a college education on hourly earnings for a man. In other words, by how much will a man's hourly earnings change if he receives a college education? Interpret the result in words. 8. Based on the results in Column (3), interpret the coefficient on "CollegerFemale" in words. 9. Based on the result in Column (3), would you conclude that the returns to education (effect of a college education on earnings) are statistically significantly different for men and women? 10. Based on the result in Column (3), would you conclude that the effect of a college education on earnings are economically/meaningfully different in economic terms for men and women?

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The detailed answer for the above question is provided below 1 The effect of college on hourly earnings is that it increases the logarithm of hourly e... View the full answer