6.28. Based on the Current Population Survey (CPS) of March 1995, Paul Rudd extracted a sample of 1289 workers, aged 18 to 65, and obtained the following information on each worker:

• Wage = hourly wage in $
• Age = age in years
• Female = 1 if female worker
• Nonwhite = 1 if a nonwhite worker
• Union = 1 if a union member
• Education = years of schooling
• Experience = potential labor market experience in years
• The full data set can be found as Table 6-16 on the textbook's Web site.

• Based on these data, estimate the following model, obtaining the usual regression statistics.

1n Wagei = B1 + B2 Age + B3 Female + B4 Nonwhite + B5 Union + B6 Education + B7 Experience + ui where 1n Wage = (natural logarithm of Wage)

• How do you interpret each regression coefficient?
• Which of these coefficients are statistically significant at the 5% level? Also obtain the p value of each estimated t value.
• Do union workers, on average, earn a higher hourly wage?
• Do female workers, on average, earn less than their male counterparts?
• Is the average hourly wage of female nonwhite workers lower than the average hourly wage of female white workers? How do you know? (Hint: interaction dummy.)
• Is the average hourly wage of female union workers higher than the average hourly wage of female non-union workers? How do you know