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Use the data in WAGE 1 .RAW for this exercise,
(i) Use OLS to estimate the equation
log(wage) = (0 + (1 educ + (2 exper + (3 exper2 + u
and report the results using the usual format.
(ii) is exper2 statistically significant at the 1% level?
(iii) Using the approximation
Find the approximation return to the fifth year of experience. What is the approximate return to the twentieth year of experience?
(iv) At what value of exper does additional experience actually lower predicated log(wage)? How many people have more experience in this sample? |
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