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Unformatted text preview: use mid200903, clear u * 1 gen wage=exp(logwage) summ wage if afri==1&fema==0 summ wage if afri==0&hisp==0&fema==0 s * 2 reg logwage fema afri hisp educ expe * returns to education. (1 year education increases wage by 13.6%) * * 3 * fail to reject. hispanics are not different from whites. * * 4 * .86% increase * * 5 gen expesq=expe^2 reg logwage fema afri hisp educ expe expesq * the expesq coefficient is insignificantly different from zero. so returns to education is constant. e * 6 * gamma_m=-delta_f * gamma_b=delta_b-delta_h * gamma_w=-delta_h * alpha_0=beta_0+delta_f+delta_h * * 7 reg logwage educ expe if afri==0&hisp==0&fema==0 predict logwage_am if afri==1&fema==0 summ logwage_am s * 8 summ logwage if afri==0&hisp==0&fema==0 summ logwage if afri==1&fema==0 * (2.32-2.21)/(2.32-1.90) = 25% is explained....
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This note was uploaded on 04/04/2011 for the course ECON 401 taught by Professor Staff during the Spring '08 term at University of Washington.
- Spring '08