Run a regression of ln(AAE) on experience, , gender, education and the interaction term female x Bachelor.
What does the coefficient on the interaction term measure?
Alexis (female) has 30 years of experience and a bachelor’s degree. What does the regression predict for her value of the ln(AAE)?
Jane (female) has 30 years of experience and a high school diploma. What does the regression predict for her value of the ln(AAE)?
What is the predicted difference between Alexi’s and Jane’s earnings?
Bob (male) has 30 years of experience and a bachelor’s degree. What does the regression predict for his value of the ln(AAE)?
Jimmy (male) has 30 years of experience and a high school diploma. What does the regression predict for his value of the ln(AAE)?
What is the predicted difference between Bob’s and Jimmy’s earnings?
