Evaluate the following statement: “In all of the regressions in the above table,

Question

Evaluate the following statement: “In all of the regressions in the above table, the coefficient on F emale (X2) is negative, large, and statistically significant. This provides strong statistical evidence of gender discrimination in the U.S. labor market.”
Dependent Variable: average hourly earnings (AHE) Regressor College (X1) Female (X2) Age (X3) Northeast (X4) Midwest (Xs) South Xe) Intercept 8.31 8.32 8.34 (0.23) 0.22) 0.22) 3.85 -3.81 3.80 (0.23) (0.22) 0.22) 0.51 0.52 (0.04) (0.04) 0.18 (0.36) (0.31) 0.43 (0.30) 17.02 87 2.05 Summary Statistics SER R2 Adj. R2 (or R2) 9.79 9.68 9.67 0.162 0.180 0.182 7440 7440 7440 Note: The standard errors are in parentheses along with the estimates.

Explanation / Answer

Yes , we see that the coefficient is
-3.85 for female for model 1

This means that
for females the average hourly earning is 3.85 units less than a male , assuming other variables as constant.
Negative sign implies that the for females the hourly earning goes down by 3.85 units.

as the result is signficant , this means that this effect is infact present and the there is strong statistical evidence of gender discrimination in the U.S. labor market

Same inference can be made from model 2 and model 3 . Only the coefficient value changes

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