Homework Help is Here – Start Your Trial Now!
Math
Statistics
Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + a;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level exper ... years of on-the-job experience .. dummy, equal to one for males and zero for females .. dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise ... represents the error term DM DF DE . Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.

Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + a;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level exper ... years of on-the-job experience .. dummy, equal to one for males and zero for females .. dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise ... represents the error term DM DF DE . Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + «;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level eXper ... years of on-the-job experience DM DF .. dummy, equal to one for males and zero for females .. dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise DE ... represents the error term Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.
Transcribed Image Text:Question 3 Suppose you have a model: wage; = a, + a,educ; + azIQ; + azexper, + a,DM; + «;DF; + a,DE; + €l where: wage .. annual wage the individual earns in £ educ .. years of education IQ ... IQ level eXper ... years of on-the-job experience DM DF .. dummy, equal to one for males and zero for females .. dummy, equal to one for French-only speakers and zero otherwise ... dummy, equal to one for English-only speakers and zero otherwise DE ... represents the error term Suppose further that you have a sample of n individuals who speak only French, only English, or are bilingual. a) What would you expect the sign of a1, az and az to be and why? b) Explain why a dummy equal to one for bilingual people and zero otherwise is not included in the model. c) Explain how you would test for discrimination against females (in the sense that ceteris paribus females earn less than males). Be specific: state the hypothesis, give the test statistic and conclude.
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS