Use the dataset twoyear. dta. The dataset is described in the text file

INSTRUCTIONS TO CANDIDATES

ANSWER ALL QUESTIONS

QUEsTIoN ONE

Use the dataset twoyear. dta. The dataset is described in the text file

twoyear description. txt. With this data

a) estimate the following regression equation by OLS with the robus t option:

twa ge1 = ß0 + ß1female1 + ß2totcoll1 + u1, u1 is the error term

b) re-estimate (lie equation. again with the robust option, but allowing for a

difference in intercept and in slope for women and men:

c) find the value of totcollj for which the predicted values of 1wajje — are the same

for men and women:

d) can women realistically get enough years of college so that their earnings catch up

with those of men? Explain.

Attachments:

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