Economics 1. In a video watched on lecture one, an interviewer brings up the point that the gender pay gap in the UK is 9% as evidence that modern society is still primarily dominated by men. Her point is that gender causes a wage differential. To this claim, the interviewee responds: "Multivariate analysis of the pay gap indicates that it doesn't exist ... If you are a social scientist worth your salt, you never do a univariate analysis [...]. You break it down by age, by occupation, interest, personality [and the gap disappears]" b. Write down the underlying regression that corresponds to the commentator's response. c. Using concepts from class, particularly of regression, what is the commentator implying regarding the first estimate (in a)? d. Discuss how the OVB formula could help us understand the effect of including a variable like "personality" on the effect of gender on wages. Write down the long, short and auxiliary equations and interpret the OVB formula (the right hand side, not the beta_I - beta_s part)