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1. Researchers are interested in the following question. How many years, since first arrival in a country, does it take for an immigrant to catch up to a similar native resident in terms of earnings? Earnings: annual income of an individual ($'000) Nyears: number of years since first arrival in a country Age: age of individual - Male: = 1 if individual is male, -0 otherwise - Educ: - 1 if individual has a university degree, = 0 otherwise . a) The researchers estimated the following two models. Please help the researchers to determine whether they should use a cubic model or a quadratic model. Earnings: = 32.42+0.84 Nyears - 0.03 Nyears2 +0.0002Nyears (0.19) (0.09) (0.01) (0.001) Earnings = 32.42+0.79 Nyears - 0.02 Nyears (0.19) (0.03) (0.001) With the quadratic model as below, find out the average difference in earnings between two immigrants who arrived in the country for 5 years and 6 years. Earnings = 32.42 +0.79 Nyears- 0.02 Nyears (0.19) (0.03) (0.001) b) Given the following models, interpret the meaning of the coefficient associated with Nyears] Earnings\= 32.65+2.16ln(Nyears) In (Earnings\) = 3.60+0.005Nyears + u In(Earnings\ ) 3.49+0.05961 In(Nyears) Given the model below, what is the effect of Male on Earnings?] Earnings Bo+ BiNyears + B2Male + Ba(Nyears Male) + u 1. Researchers are interested in the following question. How many years, since first arrival in a country, does it take for an immigrant to catch up to a similar native resident in terms of earnings? Earnings: annual income of an individual ($'000) Nyears: number of years since first arrival in a country Age: age of individual - Male: = 1 if individual is male, -0 otherwise - Educ: - 1 if individual has a university degree, = 0 otherwise . a) The researchers estimated the following two models. Please help the researchers to determine whether they should use a cubic model or a quadratic model. Earnings: = 32.42+0.84 Nyears - 0.03 Nyears2 +0.0002Nyears (0.19) (0.09) (0.01) (0.001) Earnings = 32.42+0.79 Nyears - 0.02 Nyears (0.19) (0.03) (0.001) With the quadratic model as below, find out the average difference in earnings between two immigrants who arrived in the country for 5 years and 6 years. Earnings = 32.42 +0.79 Nyears- 0.02 Nyears (0.19) (0.03) (0.001) b) Given the following models, interpret the meaning of the coefficient associated with Nyears] Earnings\= 32.65+2.16ln(Nyears) In (Earnings\) = 3.60+0.005Nyears + u In(Earnings\ ) 3.49+0.05961 In(Nyears) Given the model below, what is the effect of Male on Earnings?] Earnings Bo+ BiNyears + B2Male + Ba(Nyears Male) + u