A large company is accused of gender discrimination in wages The following model has been estimated from the company rsquo s human resource information ln(wage) 12 0 0BEDU 0 5EXPER 2 FEMALE Where WAGE is hourly wage EDU is years of education EXPER is years of relevant experience MALE indicates the employee is male 1 How much more do men at the firm earn, on average a $1 21 per hour more than females b $0 1932 more per year than females c $0 1932 per hour d 0 1932 more than females 2 A union representative suspects that men are paid more than women What hypothesis would the representative use a H 0 beta MALE 0 H 1 beta MALE 0 b H 0 beta MALE 0 H 1 beta MALE 0 c H 0 beta MALE beta EDU beta EXPER 0 H 1 beta MALE ne 0 and beta EDU 0 and beta EXPER 0 d H 0 beta MALE 0 H 1 beta MALE ne 0 3 In the past, it has been argued that men have been in the workforce much longer than women As companies pay more with experience, men receive more wages as a result Another researcher wants another model to be estimated accounting for the difference in experience by each gender The effects of education on wage is something that the researcher is also interested in observing Which of these models is likely to be used by the researcher a ln(WAGE) beta 0 beta 1 EDU beta 2 EXPER beta 3 MALE beta 4 (EXPER middot MALE) u b ln(WAGE) beta 0 beta 1 EDU beta 2 EXPER beta 3 MALE u c ln(WAGE) beta 0 beta 1 (EXPER middot MALE) u d ln(WAGE) beta 0 beta 1 EDU beta 2 EXPER beta 3 MALE u

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Posted on May 16, 2022

A large company is accused of gender discrimination in wages. The following model has been estimated from the company’s human resource information. ln(wage) = 12

A large company is accused of gender discrimination in wages. The following model has been estimated from the company’s human resource information.

ln(wâge) = 12 + 0.0BEDU + 0.5EXPER -2 FEMALE

Where

WAGE - is hourly wage

EDU - is years of education

EXPER - is years of relevant experience

MALE - indicates the employee is male.

1. How much more do men at the firm earn, on average?

a.	$1.21 per hour more than females
	b.	$0.1932 more per year than females
	c.	$0.1932 per hour
	d.	0.1932% more than females

2. A union representative suspects that men are paid more than women. What hypothesis would the representative use?

	a.	H₀: β_MALE = 0 H₁: β_MALE > 0
	b.	H₀: β_MALE = 0 H₁: β_MALE < 0
	c.	H₀: β_MALE = β_EDU = β_EXPER = 0 H₁: β_MALE ≠ 0 and β_EDU = 0 and β_EXPER = 0
	d.	H₀: β_MALE = 0 H₁: β_MALE ≠ 0

3. In the past, it has been argued that men have been in the workforce much longer than women. As companies pay more with experience, men receive more wages as a result. Another researcher wants another model to be estimated accounting for the difference in experience by each gender. The effects of education on wage is something that the researcher is also interested in observing. Which of these models is likely to be used by the researcher?

a.	ln(WAGE) = β₀ + β₁EDU + β₂EXPER + β₃MALE + β₄(EXPER·MALE) + u
	b.	ln(WAGE) = β₀ + β₁EDU + β₂EXPER + β₃MALE + u
	c.	ln(WAGE) = β₀ + β₁(EXPER·MALE) + u
	d.	ln(WAGE) = β₀ + β₁EDU + β₂EXPER + β₃MALE + u