econometrics linear regression module 1
Can you solve the following question? Check out the attachment for more details
a) Use model in column (1):
i) If Age increases from 25 to 26, how are earnings expected to change?
ii)What is the percentage difference in earnings between males and females? Who earns more? iii) What is the percentage difference in earnings between a male who has a high school
degree and a female who has a bachelor’s degree? Who earns more?
b) Use model in column (2). If Age increases from 25 to 26, how are earnings expected to change?
c) Use model in column (3). If Age increases from 25 to 26, how are earnings expected to change?
d) Do you prefer the regression in column (3) to the regression in column (1)? Explain.
e) Use model in column (4):
i) What does the coefficient on the interaction term measure?
ii) What is the percentage difference in earnings between a male who has a high school
degree and a female who has a bachelor’s degree? Who earns more?
iii) Alexis is a 30-year-old female with a bachelor’s degree. What does the regression predict
for her value of ln(AHE).

