A Subsample from the Current Population Survey Is Taken,on Weekly

question 30

Essay

A subsample from the Current Population Survey is taken,on weekly earnings of individuals,their age,and their gender.You have read in the news that women make 70 cents to the $1 that men earn.To test this hypothesis,you first regress earnings on a constant and a binary variable,which takes on a value of 1 for females and is 0 otherwise.The results were: = 570.70 - 170.72 × Female, =0.084,SER = 282.12.
(a)There are 850 females in your sample and 894 males.What are the mean earnings of males and females in this sample? What is the percentage of average female income to male income?
(b)You decide to control for age (in years)in your regression results because older people,up to a point,earn more on average than younger people.This regression output is as follows: = 323.70 - 169.78 × Female + 5.15 × Age, =0.135,SER = 274.45.
Interpret these results carefully.How much,on average,does a 40-year-old female make per year in your sample? What about a 20-year-old male? Does this represent stronger evidence of discrimination against females?

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Definitions:

Preventive Mental Health

Strategies and practices aimed at preventing mental health problems before they start.

Psychological Disorders

A wide range of mental health conditions that affect mood, thinking, and behavior, often requiring clinical diagnosis and treatment.

Poverty

A socio-economic condition characterized by a lack of financial resources necessary for basic living standards.

Counselor Empathy

The ability of a counselor or therapist to understand and share the feelings of their client, crucial for establishing trust and promoting healing.