{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

week10-1

# week10-1 - TA session 10 Econ 103 winter 2010 Wed Mar 10...

This preview shows pages 1–3. Sign up to view the full content.

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 let’s summarize the data and get an idea of what we’re looking at. . sum Variable | Obs Mean Std. Dev. Min Max -------------+-------------------------------------------------------- hispanic | 820 .3646341 .4816212 0 1 citizen | 820 .7121951 .453016 0 1 black | 820 .0890244 .2849528 0 1 exp | 820 12.46949 1.597492 10 15 wage | 820 13.52635 14.96985 1.25 250.6615 -------------+-------------------------------------------------------- female | 820 .4280488 .4950979 0 1 educatio | 820 12.90732 3.141155 0 20 Consider the model Y = β 0 + β 1 educ + β 2 exp + β 3 black + β 4 citizen + β 5 black * educ + β 6 black * exp + β 7 citizen * black + 4.1 What is the interpretation of β 7 ? Being a citizen and being black changes the log wage by β 4 + β 7 . The β 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 β 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 β 0 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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
3. What is the return to experience? 4. Is it statistically different for blacks and nonblacks? . gen logwage = log(wage) . gen blackeduc = black*educ . gen blackexp = black*exp . gen blackcitizen = black*citizen . reg logwage educ exp black citizen blackeduc blackexp blackcitizen Source | SS df MS Number of obs = 820 -------------+------------------------------ F( 7, 812) = 29.40 Model | 78.7714648 7 11.2530664 Prob > F = 0.0000
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern