(Round intermediate calculations to at least 4 decimal places.) A researcher won

Question

(Round intermediate calculations to at least 4 decimal places.) A researcher wonders whether males get paid more, on average, than females at a large firm. She interviews 50 employees and collects data on each employee's hourly wage wwage), years of higher education (EDUC), experience (EXPER), age (AGE), and gender. The GENDER dummy variable equals 1 ifmale, 0 iffemale. The data is shown in the accompanying table. Wage EDUC EXPER AGE GENDE Wage EDUC EXPER AGE GENDER $37.85 40 $15.45 37 21.72 39 26.35 52 18 14.34 38 19.15 21.26 53 16.61 57 24.65 15 59 18.39 30 25.65 12 36 15.45 43 15.45 45 18.02 31 20,39 12 37 13.44 33 29.13 14 37 17.66 23 51 27.33 43 16.96 15 37 18.02 32 14,34 45 20.39 18 40 15.45 24.18 49 17.43 14 57 17.29 43 35.89 15.61 31 20.39 20 60 35.07 22 45 11.81 40.33 15.45 10 34 20.39 17,66 16.61 13.87 25 16.33 16.35 10 43 23.15 15 60 15.45 42 20.39 32 23,67 17 47 14.88 58 16.02 46 13.88 23.15 15 52 17,65 40 24.18 laepicture click here for the Excel Data Elle a. Estimate: Wage Bo +A,EDuc A2ExPER (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places)

Explanation / Answer

Using excel:

5.665761

wage=8.6847+1.2327 EDU+0.4165 EXPER-0.0190 Age+2.2896 Gender

C-1the estimated coefficient for gender
The gender coefficent implies that males earn 2.29 per hour more than females at the firm holding everything else the same
C-2 Is the variable gender significant at the 5% level? do the data suggest that gender discrimination exists at this firm?
Ans: No ,since we donot reject null hypothesis of no discriminationC-1the estimated coefficient for gender

Wage Edu Exper Age Gender 37.85 11 2 40 1 21.72 4 1 39 0 14.34 4 2 38 0 21.26 5 9 53 1 24.65 6 15 59 1 25.65 6 12 36 1 15.45 9 5 45 0 20.39 4 12 37 0 29.13 5 14 37 1 27.33 11 3 43 1 18.02 8 5 32 0 20.39 9 18 40 1 24.18 7 1 49 1 17.29 4 10 43 0 15.61 1 9 31 0 35.07 9 22 45 0 40.33 11 3 31 1 20.39 4 14 55 0 16.61 6 5 30 1 16.33 9 3 28 0 23.15 6 15 60 1 20.39 4 13 32 0 14.88 4 9 58 1 13.88 5 4 28 0 17.65 6 5 40 1 15.45 6 2 37 0 26.35 4 18 52 1 19.15 6 4 44 0 16.61 6 4 57 0 18.39 9 3 30 1 15.45 5 8 43 0 18.02 7 6 31 1 13.44 4 3 33 0 17.66 6 23 51 1 16.96 4 15 37 0 14.34 4 9 45 0 15.45 6 3 55 0 17.43 5 14 57 0 35.89 9 16 36 1 20.39 4 20 60 1 11.81 4 5 35 0 15.45 9 10 34 0 17.66 5 4 28 1 13.87 6 1 25 0 16.35 7 10 43 1 15.45 9 2 42 1

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