Suppose that information about gender is coded as "1" if the person is female, and "0" otherwise. Consider the following simple model of hourly wage, W, determination: W =  β0 + δ0G + β1X1 + u, where X1 stands for years of schooling. Which of the following does NOT pertain to the meaning of δ0? δ0 determines whether there is wage discrimination against women. If δ0>0 then given the same level of education for men and women, women earn more than men on average. If δ0>0, then given the same level of education for men and women, women earn less than men on average. δ0 reflects the wage difference based on gender only.

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