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  1. business
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  3. log(wagei) = β0 + β1edui + β2log(experi)

log(wagei) = β0 + β1edui + β2log(experi) + β3marriedi + β4blacki + β5southi + β6urbani Using log(wagei)...

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Economics

log(wagei) = β0 + β1edui + β2log(experi) + β3marriedi + β4blacki+ β5southi + β6urbani

Using log(wagei) = 5.354 + .0628edui + .134experi + .218marriedi+ (-.198blacki) + (-.099southi) + .179urbani

1. What is the marginal effect of experience

2. A “marriage premium” means that married men earn, on average,more than nonmarried men. Holding education, experience, race, andgeographic location constant, what is the approximate difference inmonthly salary between married men and nonmarried men? Is thisdifference statistically significant at the 10% level? 1%level?

3. Modify the model by allowing log(wage) to differ across fourgroups of men: married and black, married and nonblack, single andblack, and single and nonblack. What would it look like?

Answer & Explanation Solved by verified expert
3.8 Ratings (385 Votes)
The structural model is given asThe estimated model iswheremarried is a dummy variable telling whether the person ismarried or not If married1 it means the person is married Ifmarried0 then he is non marriedblack is a dummy variable telling whether the person is black ornot If black1 it means the person is black If black0 then heis non blacksouth is a dummy variable telling whether the person is livingin the southern states or not If south1 it means the person isliving in the southern states If south0 then he is not living inthe southern statesurban is a dummy variable telling whether the person is livingin an urban area or not If married1 it means the person    See Answer
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