Where are the differences in male and female earnings functions? Using your EAEF data set, regress LGEARN on S, ASVABC, ETHBLACK, ETHHISP, MALE, MALES, MALEASVC, MALEBLAC, and MALEHISP .Next regress LGEARN on S, ASVABC, ETHBLACK, and ETHHISP only. Calculate the correlation matrix for MALE and the slope dummies. Perform an F test of the joint explanatory power of MALE and the slope dummies (verify that the F statistic is the same as in Exercise 6.17) and perform t tests on the coefficients of the dummy variables.
Exercise 6.17
Are earnings functions different for males and females? Using your EAEF data set, regress LGEARN on S, ASVABC, ETHBLACK, and ETHHISP (do not include MALE). Repeat the regression using only the male respondents. Repeat it again using only the female respondents. Perform a Chow test.