Final answer:
When the log of the wage variable is used in the regression, we can interpret the result in terms of the relationship between the log of the wage and other variables. The preference between Mod1 and Mod2 depends on the research question and analysis goals.
Step-by-step explanation:
When we take the log of the wage variable and run the regression again, we create a new model called Mod2. This new model allows us to interpret the relationship between the log of the wage and other variables. The interpretation of the new result is that for each unit increase in the independent variable, the dependent variable (log of the wage) is expected to increase by the coefficient of the independent variable in Mod2. In terms of which model to prefer, it depends on the specific research question and the goals of the analysis.