Question: Using the CPS dataset and the subsample of non-hispanic blacks (race code = 2), test the hypothesis that marriage status does not affect mean wages.
Using the CPS dataset and the subsample of non-hispanic blacks (race code = 2), test the hypothesis that marriage status does not affect mean wages.
(a) Take the regression reported in Table 4.1. Which variables will need to be omitted to estimate a regression for the subsample of blacks?
(b) Express the hypothesis "marriage status does not affect mean wages" as a restriction on the coefficients. How many restrictions is this? (
c) Find the Wald (or F) statistic for this hypothesis. What is the appropriate distribution for the test statistic? Calculate the p-value of the test.

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