Suppose that a researcher, using wage data on 250 randomly selected male workers and

280 female workers, estimates the OLS regression,

(0.18) (0.84)

Figures in the parentheses represent standard errors.

Where Wage is measured in $/hour is a binary variable that is equal to one if the person is a

male and 0 if the person is a female. Define the wage gender gap as the difference in mean

earnings between men and women.

1. What is the estimated gender gap?

Suppose that a researcher, using wage data on 250 randomly selected male workers and

280 female workers, estimates the OLS regression,

(0.18) (0.84)

Figures in the parentheses represent standard errors.

Where Wage is measured in $/hour is a binary variable that is equal to one if the person is a

male and 0 if the person is a female. Define the wage gender gap as the difference in mean

earnings between men and women.

1. What is the estimated gender gap?
2. Is the estimated gender gap significantly different from zero? Conduct a test for this.
3. Construct a 95% confidence interval for the gender gap.
4. In the sample, what is the mean wage of women? Of men?
5. Another researcher uses these same data, but regress Wages on Female, a variable that

is equal to one if the person is female and zero if the person a male. What are the

regression estimates calculated from this regression?