Where WAGE is hourly wage measured in dollars, EDU is years of education, EXPER is years of relevant experience, and FEMALE indicates the employee is female. Holding all else constant, on average, how much would wage increase if the years of education increases by 5 years?
Where WAGE is hourly wage measured in dollars, EDU is years of education, EXPER is years of relevant experience, and FEMALE indicates the employee is female. Holding all else constant, on average, how much would wage increase if the years of education increases by 5 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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D.28.
Transcribed Image Text:QUESTION 10
A large company is accused of gender discrimination in wages. The following model has been estimated from the company's human resource information
WAGE=12+0.8EDU+ 0.5EXPER-2FEMALE
Where WAGE is hourly wage measured in dollars, EDU is years of education, EXPER is years of relevant experience, and FEMALE indicates the employee is female. Holding all
else constant, on average, how much would wage increase if the years of education increases by 5 years?
O a.s4
O b. 50.8
O c. $11.3
O d.ss
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