Suppose you are estimating a wage regression, where salary is the dependent variable and age, years of education and a dummy variable for male are your independent variables. You are interested in measuring how salary differs between those who have at least a college education with those who have less than a college education. If a person is considered as having a college education when she has more than 12 years of education, how can you measure the difference in salary between college and non-college educated individuals? Select one: a. Multiply coefficient for years of education in original regression by 12 O b. Re-estimate model replacing years of education with a dummy variable for college c. Re-estimate model replacing years of education with a dummy variable for college and one for no college d. Re-estimate model interacting years of education with a dummy variable for oollogo
Suppose you are estimating a wage regression, where salary is the dependent variable and age, years of education and a dummy variable for male are your independent variables. You are interested in measuring how salary differs between those who have at least a college education with those who have less than a college education. If a person is considered as having a college education when she has more than 12 years of education, how can you measure the difference in salary between college and non-college educated individuals? Select one: a. Multiply coefficient for years of education in original regression by 12 O b. Re-estimate model replacing years of education with a dummy variable for college c. Re-estimate model replacing years of education with a dummy variable for college and one for no college d. Re-estimate model interacting years of education with a dummy variable for oollogo
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 3CQ
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