What would be the estimate suggested by kennedy

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Reference no: EM131409610

For the earnings data regression underlying Table 4.1.

(a) Replicate the regression results given in Table 4.1.

(b) Verify that the joint significance of all slope coefficients can be obtained from (4.20).

(c) How would you test the joint restriction that expected earnings are the same for Males and Females whether Black or Non-Black holding everything else constant?

(d) How would you test the joint restriction that expected earnings are the same whether the individual is married or not and whether this individual belongs to a Union or not?

(e) From Table 4.1 what is your estimate of the % change in earnings due to Union membership? If the disturbances are assumed to be log-normal, what would be the estimate suggested by Kennedy (1981) for this % change in earnings?

(f) What is your estimate of the % change in earnings due to the individual being married?

Reference no: EM131409610

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