Fill in the cells in the table below by providing the predicted log wage for each category: Domestic Workers (Min wage changed) Non-Domestic Workers (Min wage did not change) Before After
Fill in the cells in the table below by providing the predicted log wage for each category: Domestic Workers (Min wage changed) Non-Domestic Workers (Min wage did not change) Before After
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
ECONOMETRICS: Using the information in picture 3a),
- Fill in the cells in the table below by providing the predicted log wage for each category:
|
|
Domestic Workers (Min wage changed) |
Non-Domestic Workers (Min wage did not change) |
|
Before |
|
|
|
After |
|
|
![Variable
Label
Log hourly wage
=1 if After Minimum Wage Law takes effect
=1 if Domestic Service Worker
loghwage
post
domestic
postXdom
Interaction: Post X Domestic
I run a differences-in-differences regression to see if the minimum wage did indeed raise
the wages of domestic workers (i.e. was the law enforced, which is not obvious!):
loghwage |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
.031943
0.000
.0934516
post |
domestic |
.1560798
4.89
.218708
-.7097982
.0478374
-14.84
0.000
-.8035892
-.6160071
postXdom |
|
.1339875
.0691446
1.94
0.053
-.0015788
.2695537
cons
1.568741
.0225354
69.61
0.000
1.524558
1.612924](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71c8197d-6615-4a2f-b16b-3bedb32ebb0b%2F70390a27-c971-4421-a7af-fcf6228f06bf%2Fqxqzq3u_processed.png&w=3840&q=75)
Transcribed Image Text:Variable
Label
Log hourly wage
=1 if After Minimum Wage Law takes effect
=1 if Domestic Service Worker
loghwage
post
domestic
postXdom
Interaction: Post X Domestic
I run a differences-in-differences regression to see if the minimum wage did indeed raise
the wages of domestic workers (i.e. was the law enforced, which is not obvious!):
loghwage |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
.031943
0.000
.0934516
post |
domestic |
.1560798
4.89
.218708
-.7097982
.0478374
-14.84
0.000
-.8035892
-.6160071
postXdom |
|
.1339875
.0691446
1.94
0.053
-.0015788
.2695537
cons
1.568741
.0225354
69.61
0.000
1.524558
1.612924
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