Suppose that in a linear regression model hourly wages are explained as a function of gender, where the dummy variable female takes on a value of 1 if the worker is a female and 0 otherwise: SRL : wâge = 25 +2 * female Which interpretation(s) are correct for this SRL? An additional female worker increases hourly wages by 2 dollars on average. Men earn on average 25 dollars per hour. Women earn on average two dollars more per hour than men. Women are the baseline group.

Suppose that in a linear regression model hourly wages are explained as a function of gender, where the dummy variable female takes on a value of 1 if the worker is a female and 0 otherwise: SRL : wâge = 25 +2 * female Which interpretation(s) are correct for this SRL? An additional female worker increases hourly wages by 2 dollars on average. Men earn on average 25 dollars per hour. Women earn on average two dollars more per hour than men. Women are the baseline group.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.6P

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