Suppose you are interested in investigating the wage gender gap using data on earnings of men and women. Which of the following models best serves this purpose? A. Wage=βo +β1, Female + u, where Female (=1 if female) is an indicator variable and u the omor term.
B. Wage =βo + u where u is the error term.
C. Female= βo+ β1 Wage + u where Female (=1 if female) is an indicator variable and u the error term.
D. Male =βo+β1 Female+ u where Male (=1 if male) is an indicator variable and u the error term
Consider the regression model
Wage=βo + β1Female + u
Where Fomale (=1 if female) is an indicator variable and u the error term.
Identify the dependent and independent variables in the regression model above.
Wage is the variable, while FP the varlabie.