Textbook Notes (368,795)
Canada (162,165)
Economics (748)
ECON 3U03 (5)
Chapter 2

Chapter 2

2 Pages
148 Views
Unlock Document

Department
Economics
Course
ECON 3U03
Professor
James Bruce
Semester
Winter

Description
(c) EDUC increseses -> residuals also increase, this suggests error var is larger for larger values of EDUC. F SR1 – SR5 hold, there should not be any patterns evident in residuals. (d) Estimated equations are If female: Wage = -14.1681 + 2.3575EDUC If male: Wage = -3.0544 + 1.8753EDUC If black: Wage = -15.0859 + 2.4491EDUC If white: Wage = -6.5507 + 1.9919EDUC Extra year of education for black worker increases the wage rate higher than for a white worker. Similarly for female worker then male worker. (e) estimated quadratic equation; Wage = 6.08283 + 0.073489EDUC 2 Marginal effect is therefore: slope = d(Wage)/dEDUC = 2(0.073489)EDUC For person with 12 yea
More Less

Related notes for ECON 3U03

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit