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
Why might o be overstated? Explain
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Environmental And Natural Resource Economics International Edition
Authors: Thomas H Tietenberg, Lynne Lewis
10th Edition
1292060794, 9781292060798
