Suppose that information about gender is coded as "1" if the person is female, and "0" otherwise. Consider the following simple model of hourly wage, W, determination: W = β0 + δ0G + β1X1 + u, where X1 stands for years of schooling.Which of the following does NOT pertain to the meaning of δ0?δ0 determines whether there is wage discrimination against women.If δ0>0 then given the same level of education for men and women, women earn more than men on average.If δ0>0, then given the same level of education for men and women, women earn less than men on average.δ0 reflects the wage difference based on gender only.

Answered: Suppose that information about gender…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter1: Functions

Section1.CR: Chapter 1 Review

Problem 86CR

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Suppose that information about gender is coded as "1" if the person is female, and "0" otherwise. Consider the following simple model of hourly wage, W, determination: W = β0 + δ0G + β1X1 + u, where X1 stands for years of schooling.

Which of the following does NOT pertain to the meaning of δ0?

δ0 determines whether there is wage discrimination against women.
If δ0>0 then given the same level of education for men and women, women earn more than men on average.
If δ0>0, then given the same level of education for men and women, women earn less than men on average.
δ0 reflects the wage difference based on gender only.

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