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6. Interactions involving dummy variables Consider a model with an interaction term between being female and being married. The dependent variable is the log of
6. Interactions involving dummy variables Consider a model with an interaction term between being female and being married. The dependent variable is the log of the hourly wage: log(wage)=0.291(0.056)0.098 female +(0.055)0.109 married (0.072)0.301female married +(0.007)0.079 educ +(0.005)0.027 exper (0.00011)0.001 exper 2+(0.007)0.029 tenure (0.00023)0.001 tenure n=536,R2=0.461 The equation shows that the interaction between gender and marital status statistically significant. The intercept for married women is
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