Calculate the mean hourly wage for men and women

Reference no: EM132128463

Question: This problem demonstrates how multiple regression models can be used to measure discrimination in labor markets. The data, taken from the 1991 Current Population Survey, contain information on wages, education, years of labor market experience, gender, and union status.

a. Calculate the mean hourly wage for men and women in this sample. What is the difference in mean wages? Is this evidence of discrimination? Why or why not?

b. Estimate a model relating the log of wage to gender. How do you interpret the coefficient on gender? How does it relate to your answer in part (a)? How do you interpret the other coefficients?

c. Estimate a model relating the log of wage to education, years of labor market experience, gender, and union status. What happens to the coefficient on gender compared to part (b)? Why? Does this suggest discrimination? Why or why not? Suggest other variables you might include in the model.

d. Suppose you could add a series of dummy variables indicating each person's occupation to the model estimated in part (d). What might happen to the coefficient on gender? Is this a legitimate variable to include in the analysis? Why or why not?

Reference no: EM132128463

Questions Cloud

Definitely could have engaged in strategic planning : Describe a period where the organization definitely could have engaged in strategic planning

Parent company consisting of multiple chains : Most of the entities below are classified by STR as “Chains”. Which one is a “Parent Company” consisting of multiple chains?

How you would test for a causal effect : Explain why the following claims might not imply causal relationships and outline how you would test for a causal effect using an experimental methodology.

Write codes to implement the given expression : COA Assignment Task - Write codes to implement the expression: A= (B + C * D - E) on 3-, 2-, 1- and 0-address machines

Calculate the mean hourly wage for men and women : Calculate the mean hourly wage for men and women in this sample. What is the difference in mean wages? Is this evidence of discrimination? Why or why not?

Develop a business proposal persuading the senior management : Develop a business proposal persuading the senior management of your organization to initiate a change in processes, procedures.

Estimating a model of stock prices : When using OLS, we assume that the errors are independent (i.e., not serially correlated) and normally distributed with constant variance (i.e., homoscedastic).

Explain how the use of activity-based costing system : Explain how the use of an activity-based costing system could change the results of the budget, if utilized.

Does the shape of the bacteria change : Find the field button. It should be set on Bright Field, click on it and it should switch to Dark Field - Take the slide labeled bacteria from the slide rack

User Account

All Pages