A) Which of the following statement is correct?

	a.	One additional year of schooling may increase the median wage for workers by $1800, holding all other factors constant.
	b.	The median wage for workers in metropolitan areas is about $1800 higher than for workers in non-metropolitan areas, holding all other factors the same.
	c.	The median wage for workers in metropolitan areas is about 18.1% higher than for workers in non-metropolitan areas, holding all other factors the same.
	d.	One additional year of experience may increase the median wage for workers by about 7.6%, holding all other factors constant.

B)

Which percentile of wage does work experience have the biggest impact on?

	a.	25%.
	b.	Uncertain.
	c.	50%.
	d.	75%.

The tollowing scenario applies to Questions 3033 ) You want to use quantile regression to estimate a Mincer-type wage equat 2log(wage)()=0+1educ+2exper+3exper2+4black+5metro+6south+7west+8midwest where the dependent and independent variables are - wage: Wage (in dollars per week), - educ: Number of years of education, - exper: Number of years of potential work experience, - black: =1 if the worker is an African-American, =0 otherwise, - metro: =1 if the worker resides in a Standard Metropolitan Statistical Area, =0 otherwise, - south, west, midwest: region dummies indicating which part of the US the worker resides. 'ou fit the above model with percentiles =0.1,0.25,0.5,0.75,0.90 and obtain the following results: Table 1: Quantile Regression \begin{tabular}{lccccc} \hline & 0.10 & 0.25 & median & 0.75 & 0.90 \\ \hline (Intercept) & 3.5118 & 3.8201 & 4.2416 & 4.6688 & 4.9885 \\ & (0.0480) & (0.0314) & (0.0217) & (0.0232) & (0.0268) \\ educ & 0.0790 & 0.0886 & 0.0903 & 0.0888 & 0.0889 \\ & (0.0028) & (0.0019) & (0.0013) & (0.0014) & (0.0017) \\ exper & 0.1033 & 0.0927 & 0.0764 & 0.0643 & 0.0574 \\ & (0.0021) & (0.0015) & (0.0011) & (0.0011) & (0.0011) \\ exper2 & 0.0020 & 0.0017 & 0.0013 & 0.0010 & 0.0009 \\ & (0.0000) & (0.0000) & (0.0000) & (0.0000) & (0.0000) \\ black & 0.2815 & 0.2820 & 0.2569 & 0.2236 & 0.2112 \\ & (0.0275) & (0.0198) & (0.0162) & (0.0147) & (0.0125) \\ metro & 0.1612 & 0.1752 & 0.1806 & 0.1550 & 0.1478 \\ & (0.0183) & (0.0117) & (0.0085) & (0.0087) & (0.0096) \\ south & 0.1492 & 0.1379 & 0.0974 & 0.0888 & 0.0851 \\ & (0.0227) & (0.0135) & (0.0094) & (0.0102) & (0.0124) \\ west & 0.1549 & 0.1215 & 0.0731 & 0.0297 & 0.0106 \\ & (0.0241) & (0.0153) & (0.0104) & (0.0109) & (0.0143) \\ midwest & 0.0891 & 0.0672 & 0.0397 & 0.0425 & 0.0606 \\ & (0.0223) & (0.0139) & (0.0100) & (0.0102) & (0.0116) \\ \hline Num. obs. & 28155 & 28155 & 28155 & 28155 & 28155 \\ Percentile & 0.1000 & 0.2500 & 0.5000 & 0.7500 & 0.9000 \\ \hlinep