7.2 Using the regression results in column (1): a. Is the collegehigh school earnings difference, estimated from

Question:

7.2 Using the regression results in column (1):

a. Is the college–high school earnings difference, estimated from this regression, statistically significant at the 5% level? Construct a 95%

confidence interval of the difference.

b. Is the male–female earnings difference, estimated from this regression, statistically significant at the 5% level? Construct a 95% confidence interval for the difference.

image text in transcribed

The data set consists of information on over 10000 full-time, full-year workers. The highest educational achievement for each worker was either a high school diploma or a bachelor’s degree. The workers’
ages ranged from 25 to 40 years. The data set also contains information on the region of the country where the person lived, and the individual’s gender and age.
For the purposes of these exercises, let AWE = logarithm of average weekly earnings (in 2007 units)
High school = binary variable (1 if High school, 0 if less)
Male = binary variable (1 if male, 0 if female)
Age = age (in years)
North = binary variable (1 if Region = North, 0 otherwise)
East = binary variable (1 if Region = East, 0 otherwise)
South = binary variable (1 if Region = South, 0 otherwise)
West = binary variable (1 if Region = West, 0 otherwise)