Question

3) Now with this regression In (Wage) 3.31+0.09 exp. Where exp. is experience in years at job. a) Please interpret Biand B b) Suppose we want exp. to be in months instead of years (please give the new coefficients and a sentence of interpretation of the relationship between Y and X We create a new variable, In(exp), which is the natural log of experience in years. We then estimate the following regression: c) wage 10.20+2.00 In (exp.) Please interpret ß1 and Bo d) Finally, we run our wage elasticity of experience regression and get: In (Wage) 2.17+0.50+ In (exp) Please interpret and Bo

Answer 1