Suppose you have a model: wage; = ao + educ; + aIQi+azexperi + a4DM + a5DF;...

 

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Suppose you have a model: wage; = ao + educ; + aIQi+azexperi + a4DM + a5DF; + aDE + where: wage ... annual wage the individual earns in educ... years of education IQ ... IQ level exper... years of on-the-job experience DM dummy, equal to one for males and zero for females DF DE E M ...dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise ... represents the error term Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) Explain how you would measure the payoff to someone of becoming bilingual given that his or her mother tongue is: a. French b. English (5 marks) Suppose you have a model: wage; = ao + educ; + aIQi+azexperi + a4DM + a5DF; + aDE + where: wage ... annual wage the individual earns in educ... years of education IQ ... IQ level exper... years of on-the-job experience DM dummy, equal to one for males and zero for females DF DE E M ...dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise ... represents the error term Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) Explain how you would measure the payoff to someone of becoming bilingual given that his or her mother tongue is: a. French b. English (5 marks)

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To measure the payoff to someone of becoming bilingual we can examine the coefficient associated wit... View the full answer