a. wage = -0.90 + 0.54 education b. Provide an interpretation for how wage is related to education in the following: log(wage) = -0.90 + 0.543 education c. Provide an interpretation for how labor hours is related to wage in the following: log(labor hours) = -0.90 + 0.543 log (wage)

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter18: Income Distribution And Poverty
Section: Chapter Questions
Problem 4QFR
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a. How do you interpret the coefficient of the education variable in the following:
wage
= -0.90 + 0.54 education
b. Provide an interpretation for how wage is related to education in the following:
log(wage) = -0.90 + 0.543 education
c. Provide an interpretation for how labor hours is related to wage in the following:
log(labor hours) = -0.90 + 0.543 log (wage)
d. Provide an interpretation for how labor hours is related to wage in the following:
i. labor hours = -0.90 + 0.543 log (wage)
e. Provide an interpretation for how consumption is related to income in the
following: consumption = -0.90 + 0.54 income + 0.95 income?
Transcribed Image Text:a. How do you interpret the coefficient of the education variable in the following: wage = -0.90 + 0.54 education b. Provide an interpretation for how wage is related to education in the following: log(wage) = -0.90 + 0.543 education c. Provide an interpretation for how labor hours is related to wage in the following: log(labor hours) = -0.90 + 0.543 log (wage) d. Provide an interpretation for how labor hours is related to wage in the following: i. labor hours = -0.90 + 0.543 log (wage) e. Provide an interpretation for how consumption is related to income in the following: consumption = -0.90 + 0.54 income + 0.95 income?
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