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Please see below. Thank you (13.5 A researcher estimated the following regression models: Ln Y. = 30,000 + 2,0005 ln Y, = 30,000 + 1,2505

Please see below. Thank you

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(13.5 A researcher estimated the following regression models: Ln Y". = 30,000 + 2,0005 ln Y, = 30,000 + 1,2505 Where In Ym is the In [or base e logarithm) of annual wage of males and In Yr is the annual wage of females, and S is the number of years of education. Suppose that the average annual wage of males is $50,000, the annual wage of females is $40,000, the average years of education is 10 for males and B for females. a) Decompose the difference in the annual wages between males and females into a part that is due to differences in schooling; [4 marks] b) and a part that is due to "discrimination" in the returns to schooling. [4 marks] c] State why this estimate of discrimination may be too high, and too low. [2 marks]

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