Is this difference statistically significant

Reference no: EM131100096

Use the data in WAGE2.RAW for this exercise.

(i) Estimate the model

and report the results in the usual form. Holding other factors fixed, what is the approximate difference in monthly salary between blacks and nonblack? Is this difference statistically significant?

(ii) Add the variables exper2 and tenure2 to the equation and show that they are jointly insignificant at even the 20% level.

(iii) Extend the original model to allow the return to education to depend on race and test whether the return to education does depend on race.

(iv) Again, start with the original model, but now allow wages to differ across four groups of people: married and black, married and nonblack, single and black, and single and nonblack. What is the estimated wage differential between married blacks and married nonblack?

Reference no: EM131100096

Questions Cloud

Why do economists so often disagree with each other : Why do economists so often disagree with each other, and is this disagreement a sure sign that economics is not a well-developed "science" after all?

Traditional and matrix organization : Compare and contrast the traditional and matrix organization. What are its advantages and disadvantages of the matrix organization?

What do these sources say about project management : What do these sources say about project management?

Explain the availability-representativeness : Explain the availability, representativeness, and affect heuristics. In your answer, compare the three and discuss the positive and negative aspects of each.

Is this difference statistically significant : Again, start with the original model, but now allow wages to differ across four groups of people: married and black, married and nonblack, single and black, and single and nonblack. What is the estimated wage differential between married blacks an..

What are the three main reasons firms adopt erp : Reading - The ABCs of ERP. hat are the three main reasons firms adopt ERP? What are some hidden costs of ERP

A company decreases its fixed cost for producing : If a company decreases its fixed cost for producing its only product and all other things remain unchanged, then sales revenue per unit at the breakeven point will....?Delivered

Describes an environmentalist organization : Describes an environmentalist organization. Examines and describes the role, mission, structure, and activities of the environmentalist organization. Explains the environmentalist organization's concerns over globalization.

Detailing the service delivery process : Create and defend a diagram or flowchart detailing the service delivery process. The chart should clearly identify each contact point (e.g., frontline employee, supervisor, delivery, etc.) before, during, and after the purchase. Your defense of t..

User Account

All Pages