Question: 4 . Dummy explanatory variables when the dependent variable is log ( y ) Consider the following estimated model, where the dependent variable is the

4. Dummy explanatory variables when the dependent variable is log(y)
Consider the following estimated model, where the dependent variable is the log of the hourly wage:
log(wage)=0.4170.297female+0.08educ+0.029exper0.00058(exper2)+0.032tenure0.00059(tenure2)log(wage)^=0.4170.297female+0.08educ+0.029exper0.00058exper2+0.032tenure0.00059tenure2
femalefemale=1 if the person is female, and 0 if the person is maleeduceduc= level of educationexperexper= level of expertisetenuretenure= duration of tenure
The coefficient of femalefemaleimplies that for the same levels of education, expertise, and tenure, women earn about, holding other factors fixed.

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