2. A single dummy independent variable: Interpreting dummy variables Suppose that information about gender is coded as "1" if the person is female, and "0" otherwise. Consider the following simple model of hourly wage determination: wage = Bo + 80 female + Bieduc +u, educ stands for years of schooling. Which of the following pertains to the meaning of 8o? (Hint: Assume that there is the same amount of education and no omitted variables that are correlated with gender.) Check all that apply. 8o reflects the wage difference based on level of education only. Os determines whether there is wage discrimination against women. If 80 0. Adjust the graph to reflect the wage difference between men and women. Adjust the graph to reflect the wage difference between men and women. ? Men Men G Wage F E D B A O Education Which of the following shows the wage difference between men and women, 80? The distance between D and F The slope Bi The distance between A and D The distance between 0 and D