5.11 A random sample of workers contains nm = 100 men and nw = 150 women. The...

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5.11 A random sample of workers contains nm = 100 men and nw = 150 women.

The sample average of men’s weekly earnings Ym = $565.89, and the sample standard deviation is sm = $75.62. The corresponding values for women are Yw = $502.37 and sw = $53.40. Let Women denote an indicator variable that is equal to 1 for women and 0 for men and suppose that all 250 observations are used in the regression Yi = b0 + b1 Womeni + ui. Find the OLS estimates of b0 and b1 and their corresponding standard errors.

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Introduction To Econometrics

ISBN: 9781292071367

3rd Global Edition

Authors: James Stock, Mark Watson

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