Question: Suppose we are concerned that immigrant workers are earning less than non-immigrant workers and we run the regression below: ln(wi)= b0 + b1 Ii +

Suppose we are concerned that immigrant workers are earning less than non-immigrant workers and we run the regression below: ln(wi)= b0 + b1 Ii + b2 jobteni + b3 Iijobteni + ei (eq 2) Where Ii is an indicator variable that equals 1 if the individual indicates that they are an immigrant, and equals zero otherwise. And jobten is a continuous variable that indicates the number of years the individual has worked at their current job. Mean years of job tenure is jobtenI and jobtenN for immigrant & non-immigrant observations, respectively. Algebraically, what percent of the immigrant/non-immigrant total average log wage gap is due to unexplained components, according to the Oaxaca decomposition?[

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!