149k views
4 votes
Consider the following model: wage =β

1

edu+β
2

female +β
3

male, where wage: hourly wage (measured in \$), edu: years of education, female: a dummy variable equal to 1 when the gender is female and 0 otherwise; male: a dummy variable equal to 1 when the gender is male and 0 otherwise. Hats represent predictions. The estimates of β parameters are: β
1

=1,β
2

=−1,β
1

=1. What is the predicted wage difference of a male and a female with the same education level (i.e., expected male wage minus female wage)? a. −1 b. 1 C. 0 d. 2

1 Answer

4 votes

Answer:

Where wage: hourly wage (measured in $), edu: years of education, female: a dummy variable equal to 1 when the gender is female and 0 otherwise; male

Explanation:

User Mithc
by
8.5k points

No related questions found