You Have Obtained a Sample of 14,925 Individuals from the Current

question 12

Essay

You have obtained a sample of 14,925 individuals from the Current Population Survey (CPS)and are interested in the relationship between average hourly earnings and years of education. The regression yields the following result: $\hat { a h e }$ = -4.58 + 1.71×educ , R² = 0.182, SER = 9.30
where ahe and educ are measured in dollars and years respectively.
a. Interpret the coefficients and the regression R².
b. Is the effect of education on earnings large?
c. Why should education matter in the determination of earnings? Do the results suggest that there is a guarantee for average hourly earnings to rise for everyone as they receive an additional year of education? Do you think that the relationship between education and average hourly earnings is linear?
d. The average years of education in this sample is 13.5 years. What is mean of average hourly earnings in the sample?
e. Interpret the measure SER. What is its unit of measurement.

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Definitions:

Homosocial Reproduction

The tendency for people in positions of power to select or promote others who are similar to themselves, particularly in terms of gender, ethnicity, or social background.

Antifeminism

The opposition to feminism or movements aimed at establishing equality of the sexes, often supporting traditional gender roles.

Be a Man

A phrase often used to enforce traditional masculine norms emphasizing toughness and emotional suppression.

Female-Dominated

Pertaining to a field, industry, or environment where the majority of participants or individuals holding power are female.