Question: Suppose that a researcher, using wage data on 250 randomly selected male workers and 280 female workers, estimates the OLS regression, (0.18) (0.84) Figures in

Suppose that a researcher, using wage data on 250 randomly selected male workers and

280 female workers, estimates the OLS regression,

(0.18) (0.84)

Figures in the parentheses represent standard errors.

Where Wage is measured in $/hour is a binary variable that is equal to one if the person is a

male and 0 if the person is a female. Define the wage gender gap as the difference in mean

earnings between men and women.

3. What is the estimated gender gap?

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