Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Each cell represents a regression with a different outcome variable from Krueger’s (1993) study of workers who use computers. The left hand side variable is log wages. Answer based on column 2 of the above regression table.
1. Write a sentence that explains the relationship the regression is describing in row 2.
2. What is the number in parenthesis? What is it trying to communicate?
3. Write a causal statement that captures what the authors are trying to argue in row 2.
![TABLE II
OLS REGRESSION ESTIMATES OF THE EFFECT OF COMPUTER USE ON PAY
(DEPENDENT VARIABLE: In (HOURLY WAGE))
October 1984
Independent
variable
Experience
Experience-squared + 100
Black (1 = yes)
Other race (1 = yes)
Part-time (1 = yes)
Lives in SMSA (1 = yes)
Veteran (1= yes)
Female (1 = yes)
Married (1 = yes)
Married Female
Union member (1 = yes)
8 Occupation dummies
R2
I
(2) (3)
No
0.051
(1)
Intercept
1.937 0.750
0.928 2.086
0.905 1.094
(0.005)
(0.023)
(0.026) (0.006) (0.024) (0.026)
Uses computer at work (1 = yes) 0.276
0.170
0.140 0.325
0.188 0.162
(0.008) (0.008) (0.009) (0.008) (0.008)
(0.010)
Years of education
0.069 0.048
0.075 0.055
(0.001) (0.002)
0.027 0.025
(0.001) (0.001)
-0.041 -0.040
(0.002) (0.002)
-0.098 -0.066
€
(0.013) (0.012)
-0.105 -0.079
(0.020) (0.019)
-0.256 -0.216
(0.010) (0.010)
0.111 0.105
(0.007) (0.007)
0.038
0.041
(0.011) (0.011)
-0.162 -0.135
(0.012) (0.012)
0.156 0.129
(0.011) (0.011)
-0.168 -0.151
(0.015) (0.015)
0.181
0.194
(0.009) (0.009)
No
Yes
0.446
October 1989
-
(5)
No
0.491 0.082
(6)
(0.002) (0.002)
0.027 0.025
(0.001) (0.001)
-0.041 -0.040
(0.002) (0.002)
-0.121 -0.092
(0.013) (0.012)
-0.029 -0.015
70
(0.020) (0.020)
-0.221 -0.183
(0.010) (0.010)
0.138 0.130
(0.007) (0.007)
0.025 0.031
(0.012) (0.011)
-0.172 -0.151
(0.012) (0.012)
0.159 0.143
(0.011) (0.011)
-0.141 -0.131
(0.015) (0.015)
0.182
0.189
(0.010) (0.010)
No
Yes
0.451
0.486
in sa
A 1690](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea459af-623a-4b11-81ab-5d969c684eb4%2Fd680c1ae-52f2-4fe4-b219-379d8849365d%2Fmdr9kk_processed.png&w=3840&q=75)
Transcribed Image Text:TABLE II
OLS REGRESSION ESTIMATES OF THE EFFECT OF COMPUTER USE ON PAY
(DEPENDENT VARIABLE: In (HOURLY WAGE))
October 1984
Independent
variable
Experience
Experience-squared + 100
Black (1 = yes)
Other race (1 = yes)
Part-time (1 = yes)
Lives in SMSA (1 = yes)
Veteran (1= yes)
Female (1 = yes)
Married (1 = yes)
Married Female
Union member (1 = yes)
8 Occupation dummies
R2
I
(2) (3)
No
0.051
(1)
Intercept
1.937 0.750
0.928 2.086
0.905 1.094
(0.005)
(0.023)
(0.026) (0.006) (0.024) (0.026)
Uses computer at work (1 = yes) 0.276
0.170
0.140 0.325
0.188 0.162
(0.008) (0.008) (0.009) (0.008) (0.008)
(0.010)
Years of education
0.069 0.048
0.075 0.055
(0.001) (0.002)
0.027 0.025
(0.001) (0.001)
-0.041 -0.040
(0.002) (0.002)
-0.098 -0.066
€
(0.013) (0.012)
-0.105 -0.079
(0.020) (0.019)
-0.256 -0.216
(0.010) (0.010)
0.111 0.105
(0.007) (0.007)
0.038
0.041
(0.011) (0.011)
-0.162 -0.135
(0.012) (0.012)
0.156 0.129
(0.011) (0.011)
-0.168 -0.151
(0.015) (0.015)
0.181
0.194
(0.009) (0.009)
No
Yes
0.446
October 1989
-
(5)
No
0.491 0.082
(6)
(0.002) (0.002)
0.027 0.025
(0.001) (0.001)
-0.041 -0.040
(0.002) (0.002)
-0.121 -0.092
(0.013) (0.012)
-0.029 -0.015
70
(0.020) (0.020)
-0.221 -0.183
(0.010) (0.010)
0.138 0.130
(0.007) (0.007)
0.025 0.031
(0.012) (0.011)
-0.172 -0.151
(0.012) (0.012)
0.159 0.143
(0.011) (0.011)
-0.141 -0.131
(0.015) (0.015)
0.182
0.189
(0.010) (0.010)
No
Yes
0.451
0.486
in sa
A 1690
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