Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + a;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level exper ... years of on-the-job experience .. dummy, equal to one for males and zero for females .. 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 DM DF DE . Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.

Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + a;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level exper ... years of on-the-job experience .. dummy, equal to one for males and zero for females .. 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 DM DF DE . Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter2: Equations And Inequalities

Section2.1: Equations

Problem 78E

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