2. The results reported in this exercise are taken from M Bertrand and KF Hallock, (2001, "The gender gap in top corporate jobs", Industrial and Labor Relations Review, 55(1), pp.3-21) who studied earnings of top executives in a large set of US public corporations in the 1990 s. Each year these corporations must report total earning levels for their top five executives. Let Female be an indicator variable equal to 1 for females and 0 for males. A regression of the logarithm of earnings onto Female gives: (0.01)(0.05) (a) Explain what the value -0.44 of the estimated coefficient on Female means. (b) Explain what the value 2.65 of s means. (c) Does this regression suggest that female top executives earn less than top male executives? (d) Does this regression suggest that there is gender discrimination? The market value of the firm (a measure of firm size, in $1,000,000 ) and the stock return (a measure of firm performance, in percentage points) are added to the model. The estimates are ln(Earningsi)=3.860.28Femalei+0.37ln(MarketValuei)+0.04Return(0.03)(0.04)(0.004)(0.003)N=46,670,adj.R2=0.345. (e) Explain what the value of the coefficient on ln (MarketValue) means. (f) The coefficient on Female is now -0.28 . Explain why it has changed from the previous regression. (g) Are large firms more likely to have female top executives than small firms? Explain