You Have Learned That Earnings Functions Are One of the Most

question 38

Essay

You have learned that earnings functions are one of the most investigated relationships in
economics.These typically relate the logarithm of earnings to a series of explanatory
variables such as education, work experience, gender, race, etc.
(a)Why do you think that researchers have preferred a log-linear specification over a linear
specification? In addition to the interpretation of the slope coefficients, also think about
the distribution of the error term.

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Definitions:

Negative Terms

Words or phrases used to denote the absence, exclusion, or denial of something within logical or linguistic expressions.

Uncooked

Refers to food that has not been cooked, being in its raw or natural state and not subjected to heat.

Horseless

Pertaining to a vehicle or a mode of transport that does not require horses for power.

Genus

A class or category of things sharing common characteristics; in biology, it refers to a classification ranking above species and below family.