Question: Consider the regression model Wage= 1 + 2 School+ 3 (SchoolFemale)+u where, Wage = individual's daily wage School = years of schooling Female = 1
Consider the regression model
Wage=1+2School+3(SchoolFemale)+u
where,Wage= individual's daily wage
School= years of schooling
Female= 1 if the individual is female, = 0 if the individual is male
And suppose the estimated coefficientsb1,b2,andb3are all different from 0.
If we plot:
(1) the predicted relation betweenWageandSchoolfor females and
(2) the predicted relation betweenWageandSchoolformales,
then the plot of (1) and (2) will havethe same or differentinterceptand the same or different slope?
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