We have a pooled cross section of data with data from 2009 and 1999 on women’s wages and their years of education. We consider the model: wage = β0 + β1Year2009 + β2educ + β3Year2009 × educ + u where wage is the hourly wage and educ is the years of education. Year2009 is a dummy variable equal to 1 in the year 2009 and 0 otherwise. Which of the following measures the change in the effect of education on the wage between 1999 and 2009? a) β0 b) β1 + β2 + β3 c) none of these answers d) β1 + β3 e) β3
We have a pooled cross section of data with data from 2009 and 1999 on women’s wages and their years of education. We consider the model: wage = β0 + β1Year2009 + β2educ + β3Year2009 × educ + u where wage is the hourly wage and educ is the years of education. Year2009 is a dummy variable equal to 1 in the year 2009 and 0 otherwise. Which of the following measures the change in the effect of education on the wage between 1999 and 2009? a) β0 b) β1 + β2 + β3 c) none of these answers d) β1 + β3 e) β3
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
We have a pooled cross section of data with data from 2009 and 1999 on women’s wages and their years of education. We consider the model:
wage = β0 + β1Year2009 + β2educ + β3Year2009 × educ + u
where wage is the hourly wage and educ is the years of education. Year2009 is a dummy variable equal to 1 in the year 2009 and 0 otherwise.
Which of the following measures the change in the effect of education on the wage between 1999 and 2009?
a) β0
b) β1 + β2 + β3
c) none of these answers
d) β1 + β3
e) β3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education