7. In the following regression equation femalei is a dummy equal to one if indiv

Question

7. In the following regression equation femalei is a dummy equal to one if individual i is female and 0 if individual i is a male, and wage is person i's hourly wage in dollars. wage, = 11-2female, what are and A ifyou estimated the following model where male, is a dummy equal to 1 if individuali is a male and 0 if individual i is a female? [Assume all individuals in the dataset are classified as either male or female.] wage, = 0+ ,male 8. The return to education is defined as how much a person's earnings change for each additional year of education. Using the following variables, write down the equation that you would need to estimate if you want to estimatea model that could tell you if the return to education was different for men and women. earnings-annual earnings in dollars educ = number of years of education female = 1 if female ,0 if male . What was the fundamental research question that was being addressed in the Moving to Opportunity (MTO) paper that we read? Explain why the estimates reported in the paper represent an Intention to Treat effect.

Explanation / Answer

For male :

Wage = 11 -2male

That is bo is 11 and b1 =2

Can be seen by comparing the estimated equation to the modeled equation.

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