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Unformatted text preview: TA session 10 Econ. 103, winter 2010 Wed., Mar. 10, 2010, 10:00 a.m. and 1:00 p.m. in PP2400E. HW4 Problem 4 First lets summarize the data and get an idea of what were looking at. . sum Variable  Obs Mean Std. Dev. Min Max+ hispanic  820 .3646341 .4816212 1 citizen  820 .7121951 .453016 1 black  820 .0890244 .2849528 1 exp  820 12.46949 1.597492 10 15 wage  820 13.52635 14.96985 1.25 250.6615+ female  820 .4280488 .4950979 1 educatio  820 12.90732 3.141155 20 Consider the model Y = + 1 educ + 2 exp + 3 black + 4 citizen + 5 black * educ + 6 black * exp + 7 citizen * black + 4.1 What is the interpretation of 7 ? Being a citizen and being black changes the log wage by 4 + 7 . The 7 is the additional semielasticity of citizenship on log wage in the black subgroup. Students seem to prefer the following form of the answer: You can write if black changes from 0 to 1, the log wage changes by 7 . Recall Y is the log wage. That means the coefficients are semielasticities. Return to the week 8 notes if you have forgotten semielasticity. 4.2 For which group does represent the intercept? For nonblack noncitizens. (That is, for white and hispanic aliens.) 4.3 Estimation questions 1. What is the return to education? 2. Is it statistically different for blacks and nonblacks? 1 3. What is the return to experience? 4. Is it statistically different for blacks and nonblacks?...
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This note was uploaded on 03/15/2010 for the course ECON 103 taught by Professor Sandrablack during the Winter '07 term at UCLA.
 Winter '07
 SandraBlack
 Econometrics

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