I am working on Mincer model, I have the main variables in the regresion which a

Question

I am working on Mincer model, I have the main variables in the regresion which are, nationality, gender, education, education^2, Experience, Experience^2

I am testing the significance of each variable, however Education and Education^2 variables are the least signifacant.

When I add the Days of Annual leave in the formula (Significant factor; however the professor doesn't like it) , significance increases to

How Can I convince the professor? Is there a way that Annual leave can affect the education factor theoritically? (My research is about rate of returns to education)

Explanation / Answer

So, you are modelling rate of returns to education and days of annual leave.

You might want to see why Days of Annual leave is significant? The relation of more annual leave mean more /less return or the opposite is significant for what reason?

Theoretically, Education should have come significant without introduction of Annual days leave variable. There seems to be a problem with interaction of the 2 variables. It may happen that the people who take a certain type/quality/qualification of education take more leave and hence these variables when introducted together are significant.

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