D | Question 19 4.6 pts Earnings functions attempt to find the determinants of e

Question

D | Question 19 4.6 pts Earnings functions attempt to find the determinants of earnings, using both continuous and binary variables. One of the central questions analyzed in this relationship is the returns to education. Collecting data from 253 individuals, you estimate the following relationship In(earning)-0.140.093 Educ +0.032 Exper-0.0005 Exper"2 0.158 Female +0.173 Married-0.218 (Female x Married), Use the regression results from above question, what is the percentage increase in earnings if experience increase from 10 to 15, keeping all else the same?

Explanation / Answer

expecrted change in earning =ln(earning 2)-ln(earning1)=0.032*(15-10)-0.0005*(152-102)

(earning 2/earning 1) =e0.0975 =1.10241 which is equivalent to 10.2411 % increase in earnings,

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