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. In the sample, what is the mean wage of women? Of men?
2. 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?