Problem Set 6 Econometrics I Due 4/5 Resource Economics 702 1. The following model was specified to estimate the effects of human capital on U.S. wages: 2012i3.iiiiiiiiiffuphwageyrsedxpxpfexpfeunioncovpensionhinspdueeeThe data are from the 2004 Current Population Survey and are available on the course website under Problem Sets. Data definitions/descriptions are provided in a separate sheet in the Excel file. (2) a. Review your results. Which variables are statistically significant? Would you suggest dropping some of the variables from the model? (2) b. Using the specification above, write explicitly the null hypothesis implied by the following sentence and complete a test of that null hypothesis: “There are no gender differences in wages; all differences can be explained by human capital differences.” Are your results consistent with your conclusions from part a?
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