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?

---

Definitions:

Abbreviation

The process or result of shortening a word or phrase by omitting letters or using symbols.

Invasive

A procedure or disease that enters or affects the body by entering or cutting skin or by entering through a body cavity.

Rights-Based Argument

An argumentation approach that is grounded on the assertion of rights, emphasizing moral or legal entitlements and obligations.

Power-Based Approach

A strategy in negotiations or decision-making that relies on leveraging one's power or authority to influence outcomes.