Use the data in WAGE 1 .RAW for this exercise.
(i) Use equation (7.18) to estimate the gender differential when educ = 12.5. Compare this with the estimated differential when educ = 0.
(ii) Run the regression used to obtain (7.18), but with female ( (educ - 12.5) replacing female-educ. How do you interpret the coefficient on female now?
(iii) Is the coefficient on female in part (ii) statistically significant? Compare this with (7.18) and comment.