Question: 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

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.

Step by Step Solution

★★★★★

3.44 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

i ii iii When educ 125 the approximate proportionate difference in estimated wage between women and ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

839-M-E-E-A (615).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!

Use the data in WAGE2.RAW to estimate a simple regression explaining monthly salary (wage) in terms of IQ score (IQ). (i) Find the average salary and average IQ in the sample. What is the sample...

Use the data in WAGE2.RAW for this exercise. (i) Consider the standard wage equation log(wage) = (0 + (1educ + (2exper + (3 tenure + u. State the null hypothesis that another year of general...

Use the data in WAGE2.RAW for this exercise. (i) In Example 15.2, using sibs as an instrument for educ, the IV estimate of the return to education is . 122. To convince yourself that using sibs as an...

C7.7 Use the data in WAGE1.RAW for this exercise. NING SRO (i) Use equation (7.18) to estimate the gender differential when educ 12.5. Compare this with the estimated differential when educ = 0. (ii)...

C7 Use the data in WAGE1.RAW for this exercis (i) Use equation (7.18) to estimate the gender differential when educ 5 12.5. Compare this with the estimated differential when educ 5 0. (ii) Run the...

the raw data employee wage hours IQ KW educ exper tenure age marriage gender urban sibs brthord meduc feduc 1 769 40 93 35 12 11 2 31 married Female Y 1 2 8 8 2 . 50 119 41 18 11 16 37 married Male Y...

4 The data set BWGHT contains data on births to women in the United States. Two variables of interest are the dependent variable, infant birth weight in ounces (bwght), and an explanatory variable,...

1 (1 point) You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over...

You have to load two libraries for functions used. library(memisc) # for mable function libraru(Homisc) # for label function 1. Using the cps data (data is in stata format, use import menu>from stata...

Instructions : Code problems and solve using R studio, when necessary. *Note* First step always use the following example to lead data Example is CHARITY data is mentioned follow:...

Under what circumstances might it be acceptable for a company preparing IFRS financial statements to follow an accounting treatment developed by the FASB?

The following information about the payroll for the week ended December 30 was obtained from the records of Arnsparger Equipment Co.: Tax rates assumed: Social security, 6% Medicare, 1.5% State...

What is the importance of relationship marketing and how can direct marketing communications techniques contribute to customer loyalty?

Consider the constrained cell means model defined by Bij hije for 1,3,1,4, and r 1,,n, subject to the constraints - =13 s -414-24 Use both the model reduction and the Lagrange multiplier methods to...

Prove that xiyi = xiyi = xiyi, where xi - = (Xi - ) and yi - = (Yi - ).

Prove that xi = yi = 0, where xi and yi are as defined in Problem 2.27.

State whether the following statements are true, false, or uncertain. Give your reasons. Be precise. a. The stochastic error term ui and the residual term ei mean the same thing. b. The PRF gives the...

Many celebrities in public figures have Twitter accounts with large number of followers. However, some of these followers are fake, resulting from accounts generated by spam and computers. In a...

The Pebble Beach Company purchased a new machine for $25,000. The useful life of the machine is 5 years and the salvage value is $5,000. Compute the depreciation expense for year 1 and the book value...

Explain carefully why the data observed in the goodness of fit test might not come from a Binomial distribution, making reference to likely relevant characteristics of real training classes. So the...