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A Use the CPS data to calculate mean log(wage) for women and men. log(wage) is coded as the variable LNWAGE and the variable FE is coded 1 for female and 0 for male.) First use the SERIES command to obtain a variable MALE which codes 1 for male and 0 for female by transforming the variable FE. (Hint: MALE=1-FE.) Then run the following regressions:
LS LNWAGE FE MALE LS LNWAGE C FE LS LNWAGE C MALE
What is the estimated difference among female and male (log) wage? How do you interpret the coefficients in every case? (Think about plugging in values for the right hand side variables in every case.) Using the CPS data, run the regression ls wsal_val c ed age fe 1-fe What happens and why?
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