hw3-fall09 - Homework 3 Econometrics: ECO 721 Fall 2009 Due...

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Homework 3 Econometrics: ECO 721 Fall 2009 Due Thursday, October 8 You must turn in this assignment before class begins on the due date. In this and all future assignments, you are to turn in neatly written answers to all questions. Photocopies are not acceptable. Loose pages will not be accepted. You must use a staple or paper clip. 1 . Consider the following baseline regression model of the determinants of wages log( wage ) = & 0 + 1 female + 2 black + 3 hispanic + 4 immigrant + 5 age + 6 age 2 + 7 advdgree + 8 immigrant advdgree + u; where female , black (implies non-hispanic), hispanic and immigrant are dummy variables with obvious meaning and advdgree is a dummy variable which equals 1 if the person has a post-graduate (bachelors) degree. In addition, advdgXimm is the interaction of advdgree and immigrant . Estimate this model using the dataset in cps_subset.dta. a . Test the hypothesis that 1 = ± 0 : 2 . What do you conclude? b
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This note was uploaded on 11/12/2009 for the course ECONOMICS 721 taught by Professor Partha during the Spring '09 term at CUNY Hunter.

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