I. The results from two alternative wage models for men are listed below. n = 935 Model 1 Model 2 SST 165.66 165.66 SSE 32.36 32.69 SSR 133.29 132.96 log(wage) Coef. std. error Coef. std. error constant 6.706 0.111 6.687 0.124 educ 0.067 0.006 0.067 0.007 exper 0.015 0.003 0.015 0.013 tenure 0.012 0.002 0.024 0.008 black -0.173 0.037 -0.175 0.039 south -0.109 0.027 -0.109 0.027 -0.0005 0.0055 tenure2 -0.0075 0.0005 exper2 i. Holding other factors fixed in Model 1, what is the estimated difference in monthly salary between black men and non-black men? Test the null hypothesis that this difference is equal to -0.10 against the alternative that it is less than -0.10 at the 0.01 significance level. ii. Test whether tenure and exper2 are jointly significant at the 0.05 significance level. iii. Using Model 1, provide a new model that allows the return to education to differ for black versus non-black males. Assuming the return to education is greater for black males, what level of education eliminates the wage gap between black and non-black men? Your answer will be an equation, rather than a number. iv. Transform Model 1 to allow the difference in wages between black and non-black males to differ in the South. I. The results from two alternative wage models for men are listed below. n = 935 Model 1 Model 2 SST 165.66 165.66 SSE 32.36 32.69 SSR 133.29 132.96 log(wage) Coef. std. error Coef. std. error constant 6.706 0.111 6.687 0.124 educ 0.067 0.006 0.067 0.007 exper 0.015 0.003 0.015 0.013 tenure 0.012 0.002 0.024 0.008 black -0.173 0.037 -0.175 0.039 south -0.109 0.027 -0.109 0.027 -0.0005 0.0055 tenure2 -0.0075 0.0005 exper2 i. Holding other factors fixed in Model 1, what is the estimated difference in monthly salary between black men and non-black men? Test the null hypothesis that this difference is equal to -0.10 against the alternative that it is less than -0.10 at the 0.01 significance level. ii. Test whether tenure and exper2 are jointly significant at the 0.05 significance level. iii. Using Model 1, provide a new model that allows the return to education to differ for black versus non-black males. Assuming the return to education is greater for black males, what level of education eliminates the wage gap between black and non-black men? Your answer will be an equation, rather than a number. iv. Transform Model 1 to allow the difference in wages between black and non-black males to differ in the South