Question
Consider the following wage model to be estimated: ln( wage)=+oEdu+1 Degree+2 Exp+3 Exp^2+u where Edu = years of education Degree = 1 if you hold
Consider the following wage model to be estimated:
ln( wage)=+oEdu+1 Degree+2 Exp+3 Exp^2+u where Edu = years of education Degree = 1 if you hold a college degree (0 if not) Exp = years of work experience
Given the shape of the wage-schooling locus, what else might we include in our wage equation?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
