EC303exam2F08

# EC303exam2F08 - ECON 303 EXAM 1 FALL 2008 DUE FRIDAY at...

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You want to find the effect of introducing two variables, gender and marital status. Accordingly you specify a binary variable that takes on the value of one for females and is zero otherwise ( Female ), and another binary variable that is one if the worker is married but is zero otherwise ( Married ). Adding these variables to the regressors results in: 0.21 + 0.093 × Educ + 0.032 × Exper – 0.0005 × Exper 2 (0.16) (0.012) (0.006) (0.0001) - 0.289 × Female + 0.062 Married , (0.049) (0.056) 2 R = 0.43, SER = 0.378 e. Are the coefficients of the two added binary variables individually statistically significant? Are they economically important? In percentage terms, how much less do females earn per hour, controlling for education and experience? How much more do married people make? What is the percentage difference in earnings between a single
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## This note was uploaded on 05/03/2010 for the course ECON 303 taught by Professor Grant during the Spring '10 term at Lewis and Clark Community College.

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EC303exam2F08 - ECON 303 EXAM 1 FALL 2008 DUE FRIDAY at...

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