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The CPSdata to re-estimate the difference among average male and female pay. Use for example, the regression
LS LNWAGE C FE
a. Can you avoid the hypothesis that mean female earnings are higher than mean male earnings at the 5 percent significance level? (This calls for a one-tailed test.) Can you avoid the hypothesis at the 1 percent level.
b. Can you avoid , at the 5 percent significance level, the hypothesis that the gender earnings differential eqivalent25 percent?
c. Forget about gender for the moment. Regress log(wage) on age (and a constant, of course). Give a 95 percent confidence interval for the effect of age on lnwage. Give a 99 percent confidence interval.
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