You Have Collected a Sub-Sample from the Current Population Survey

question 14

Essay

You have collected a sub-sample from the Current Population Survey for the western region of the United States.Running a regression of average hourly earnings (ahe)on an intercept only,you get the following result: = 0 = 18.58
a.Interpret the result.
b.You decide to include a single explanatory variable without an intercept.The binary variable DFemme takes on a value of "1" for females but is "0" otherwise.The regression result changes as follows: = 1×DFemme = 16.50×DFemme
What is the interpretation now?
c.You generate a new binary variable DMale by subtracting DFemme from 1,and run the new regression: = 2×DMale = 20.09×DMale
What is the interpretation of the coefficient now?
d.After thinking about the above results,you recognize that you could have generated the last two results either by running a regression on both binary variables,or on an intercept and one of the binary variables.What would the results have been?

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Definitions:

Semantic Memory

Refers to a type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Episodic Memory

A form of persistent memory that deals with the recall of particular incidents, conditions, and perceptions, inclusive of the circumstances and feelings tied to them.

Nondeclarative

A type of memory expressed through performance rather than conscious recall, also known as implicit memory.

Elaborative Rehearsal

A technique in memory that involves thinking about the meaning of the term to be remembered, as opposed to repetitive rote memorization.