Question: Using the cps09mar dataset and the subsample of non-Hispanic Black individuals (race code = 2) test the hypothesis that marriage status does not affectmean wages.

Using the cps09mar dataset and the subsample of non-Hispanic Black individuals (race code = 2) test the hypothesis that marriage status does not affectmean wages.

(a) Take the regression reported in Table 4.1. Which variables will need to be omitted to estimate a regression for this subsample?

(b) Express the hypothesis “marriage status does not affectmean wages” as a restriction on the coefficients.

How many restrictions is this?

(c) Find the Wald (or F) statistic for this hypothesis. What is the appropriate distribution for the test statistic? Calculate the p-value of the test.

(d) What do you conclude?

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