$6.$ Use the data on Wage$2$ for this exercise.

a$.$ Estimate the modeluurbansouthblackmarriedtenureereduwage $++++++++=76543210$ exp$)$log$($

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and report the results in the usual form. Holding other factors fixed, what is the approximate

difference in monthly salary between blacks and nonblacks? Is this difference statistically

significant?

b$.$ Add the variables$2$

exp er and tenure$2$to the equation and show that they are jointly

insignificant at even $20\%$ level.

c$.$ Extend the original model to allow the return to education to depend on race and test

whether the return to education does depend on race.

d$.$ Again, start within the original model, but now allow wages to differ across four

groups of people: married and black, married and nonblack, single and black, and single

and nonblack. What is the estimated wage differential between married blacks and

married nonblacks?