C)

Which percentile of wage does education have the biggest impact on?

	a.	50%.
	b.	90%.
	c.	10%.
	d.	Uncertain.

2 points

D)

Which of the following variables does have the most "uniform" (across different percentiles) influence on wage?

	a.	midwest.
	b.	metro.
	c.	south.
	d.	west.

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