Linear regression where wage hourly wage in USexist, educ = years of education,

Question

Linear regression where wage hourly wage in USexist, educ = years of education, exper = years of work experience, exper2 = experience squared (exper * exper), and tenure = number of years at the same employer 5. According to the estimated coefficients of exper and exper2, what is the functional form of the relationship between experience and wage when we hold educ and tenure constant? Explain. 6. What is the marginal effect on predicted wage of increasing experience at a. 0 years of experience b. 8 years of experience c. 24 years of experience 7. At how many years is the estimated marginal effect of experience on wage zero?

Explanation / Answer

5) ln (wage) = c + 20.51075 *exper - 0.0042021*exper^2

6) marginal effect on predicted wage when

a) 0 year is 0

b) 8 years is 20.51075 *8- 0.0042021*8^2 = 163.817

c) 24 years is   20.51075 *24- 0.0042021*24^2 = 489.83759

7) let that time = t

20.51075 t - 0.0042021*t^2 =0
t = 20.51075/ 0.0042021

=4881.0713

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.