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Questions 9 and 12 are based on the following regression: Suppose the estimation of the following wage model: wage-1A+Anorehite + ßacity + βnowhite . city + β,nonwhite . educ + where nonwhite indicates being a non-white person, city indicates living in city/urban area, and nomwhite city and nonwhite educ are interaction terms yields the estimates: wage1-0.6nonwhite+ 1.Scity+1.2nonwhite*city - 0.8nonwhite educ +2.Seduc 9. What is the wage differential between a person living in a city and a person living in a 10. What is the return to education (an additional year of education) ceteris paribus? (5pts) 11. What is the wage differential between a white living in city and a non-white living in rural area ceteris paribus? (5pts) rural area given 10 years of education? You must show your work. (10pts) 12. What is the wage differential between a white living in rural area with 10 years of ucation and a non-white living in rural area with 12 years of education? You must show your work. (10pts) ed
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