Question: 4 . Dummy explanatory variables when the dependent variable is log ( y ) Consider the following estimated model, where the dependent variable is the
Dummy explanatory variables when the dependent variable is logy
Consider the following estimated model, where the dependent variable is the log of the hourly wage:
logwagefemaleeducexperexpertenuretenurelogwagefemaleeducexperexpertenuretenure
femalefemale if the person is female, and 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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