Business, 03.06.2021 20:50 thebrain1345

In this exercise, you will run multiple regressions with interaction terms. First, consider the following regression with an interaction between the two binary regressors, collgrad and union: wage; = Bo + Biunioni + B2 collgrad; + Bzunionx collgrad; + Wis
To estimate this model, generate an interaction term between collgrad and union. Use the regress command to estimate the OLS coefficients.
(a) What is the base category in this model? What is the average wage for workers in this base category?
(b) What is the difference in average wage for non-college graduates in a union and non-college graduates not in a union? Please report a positive number.
(c) What is the difference in average wage for college graduates in a union and college graduates not in a union? Please report a positive number. Next, consider the following regression with an interaction term between tt1_exp and union: Inwage; = Bo + Biunioni + Battl_expi + Bzunionxttl_expi + Uis To estimate this model, generate an interaction term between ttl_exp and union. Use the regress command to estimate the OLS coefficients.
(d) For non-unionized workers, what is the average percentage change in wage when experience increases by one year?
(e) For unionized workers, what is the average percentage change in wage when experience increases by one year?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 08:30

Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price

Answers: 1

Answer

Business, 22.06.2019 17:10

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

Answer

Business, 23.06.2019 00:30

Environmentalists are concerned about emissions of sulfur dioxide into the air. the average number of days per year in which sulfur dioxide levels exceed 150 milligrams per cubic meter in milan, italy, is 29. the number of days per year in which emission limits are exceeded is normally distributed with a standard deviation of 4.0 days. what percentage of the years would exceed 37 days?

Answers: 2

Answer

Business, 23.06.2019 02:30

When the price of pencils increases from $1.50 to $2.50, there is an increase in quantity demanded of pens from 100 to 150. the cross-price elasticity of demand between pencils and pens is: ?

Answers: 3

Answer

You know the right answer?

In this exercise, you will run multiple regressions with interaction terms. First, consider the foll...

Questions