ECON 410 - Week 8: Wage Gap Analysis and Hypothesis Testing, Study notes of Introduction to Econometrics

Download ECON 410 - Week 8: Wage Gap Analysis and Hypothesis Testing and more Study notes Introduction to Econometrics in PDF only on Docsity! Week #8 ECON 410 Seung Gyu (Andrew) Sim 1 Wage Data [1-3] Suppose that you are curious about wage gap between men and women so that you collect samples and run a regression. The result is summarized in the following table. 1. Fill out the empty space in the table. 2. What is the appropriate test to claim that “workers with same education and same experience receive same salary in expectation regardless gender”? What are the null hypothesis and the alternative hypothesis for the test? 3. What is your conclusion? CAREFULLY state your conclusion and justify it. [4-5] Suppose that you are arguing with education science people. Based on the above result, they argue that ”education is productive”. 4. What is the appropriate test to justify their argument? What are the null hypothesis and the alternative hypothesis for the test? 5. What is your conclusion? CAREFULLY state your conclusion and justify it. Also, check what kind of potential problems are here (if any). 1