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Assign 5 - Question 1 of 10 Create two new variables: Agei2...

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Question 1 of 10
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Create two new variables: Age i 2 is the square of Age i (to do this click on Genr and enter AGE2=Age^2) Femaleeducation i is equal to the education of that person if she is a female and is equal to zero if that person is male (to create this variable click on Genr and enter femaleeducation = female*education) Some people believe that wage and age are not linearly related. Age can be used as a proxy for experience. As age increases, experience increases. But at some high levels of age, an increase in age may not increase wage as it does at low levels of age. This is why we use both AGE i and AGE2 i in our model. Estimate the following model: Wage i = ß 0 + ß 1 Age i + ß 2 Age 2 i + ß 3 Education i 4 Female i 5 Femaleeducation i +u i Explain in detail what ß 3 measures in your model. (be careful) It is the change in expected wage due to a change in education for a male holding all other independent variables constant. Question 2 of 10
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Assign 5 - Question 1 of 10 Create two new variables: Agei2...

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