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Consider the following multiple linear regression model: y = Bo+ B1x1+ ... + Bkxk + vifemale + u. Let y be wage and xi's be
Consider the following multiple linear regression model: y = Bo+ B1x1+ ... + Bkxk + vifemale + u. Let y be wage and xi's be variables measuring worker's productivity such as years of education and years with current employers. Let female = 1 for female and female = 0 for male. Which of the following statements is correct? Finding that Y1 is statistically significant at the 1% level implies gender has a causal effect on wage level. O Finding that gamma with hat on top subscript 1 is statistically significant at the 1% level implies that, holding the levels of x1 through xx constant, the average level of wage for female is different than the average level of wage for male. O Finding that gamma with hat on top subscript 1 is statistically significant at the 1% level implies there is gender base wage discrimination in the labor market. O All of the above
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