Reference no: EM13943861
Given the provided small sample of observations from 2002 cps annual demographic file, containing 1,000 observations with the following variable for individuals who work at least 30 hours per week.
1. Age = age in years
2. Married = 1 if person is married
3. Female = 1 if female
4. hsdiploma = 1 if person has a high school diploma
5. somecollege = 1 if person has attended college
6. Associate = 1 if person has an associate degree
7. Bachelors = 1 if person has a bachelor's degree
8. Masters = 1 if person has a master's degree
9. Doctorate = 1 if person has a Ph.D. or other doctorate degree
10. Professional = 1 if person has a graduate professional degree (no high school diploma is the omitted category of education)
11. White = 1 if person is White, non-Hispanic
12. Black = 1 if person is Black, non-Hispanic
13. hispanic = 1 if person is Hispanic
14. Immigrant = 1 if person was born abroad, and not of US parents
15. Union = 1 if working on a union job
16. Wage = hourly earnings in dollars
17. Hours = number of hours worked per week
Question:
1. Do persons with Masters Degrees earn more than those with Bachelor's degrees?
2. Do persons with Doctorate degrees earn twice as much as those with Bachelor's degrees?
3. Does the effect of education vary by gender? Construct any interaction variables you need and test the joint hypothesis using appropriate restricted and unrestricted regressions.
4. Does the effect of immigrant status vary by gender? Test this hypothesis and report the magnitudes of the effects of male and female immigrants on wages.
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