SOLVED: Problem 1: Consider an earnings function with the dependent variable y (monthly usual earnings) and the independent variables years of education (T1), gender (Iz) coded as 1 if female and 0 if male, and work experience in years (T3). We are interested in the partial effect of years of education on earnings. We consider the following possible relations (that are assumed to be exact):y = 80 B1*T1 B2*Iz B3*T3y = 80 B1*T1 B2*82 B3*83 B4*T2y = Bo B1*T1 B2*T2 B3*T3 B4*T1^
SOLVED: Problem 1: Consider an earnings function with the depend…
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