You Have Estimated the Following Regression to Explain Hourly Wages

question 32

Essay

You have estimated the following regression to explain hourly wages, using a sample of
250 individuals: $$\begin{aligned}\text { AHE } _ { i } = & - 2.44 - 1.57 \times \text { DFemme } + 0.27 \times \text { DMarried } + 0.59 \times \text { Educ } + 0.04 \times \text { Exper } - 0.60 \times \text { DNonwhite } \\& ( 1.29 ) ( 0.33 ) \quad \quad\quad\quad\quad\quad\quad( 0.36 )\quad\quad\quad\quad\quad\quad \quad ( 0.09 ) \quad\quad\quad\quad\quad ( 0.01 )\quad\quad\quad\quad\quad(0.49) \\\\& + 0.13 \times \text { NCentral } - 0.11 \times \text { South } \\& ( 0.59 ) \quad \quad\quad\quad\quad\quad\quad( 0.58 ) \\\\& R ^ { 2 } = 0.36 , S E R = 2.74 , n = 250\end{aligned}$$
Numbers in parenthesis are heteroskedasticity robust standard errors. Add "*" $( 5 \% )$ and "**" $( 1 \% )$ to indicate statistical significance of the coefficients.

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Definitions:

Excise Tax

A charge on the manufacturing, trading, or utilization of a product within a country.

Tax Burden

The Tax Burden represents the total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.

Tax Burden

The measurement of the total amount of taxes imposed on an individual or business by the government, representing the financial impact of taxation.

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.