Consider the following data for men and women: Men Women Average Hourly Wage:$12.40 $9.90 Average Years of Work Experience: 14.3  9.5 If a regression estimates the return to experience for men, ?M, to be 0.25, how much of the average difference in wages can be attributed to differences in work experience and how much can be attributed to discrimination and/or unobservable characteristics?

A. $1.20 to differences in work experience; $1.30 to discrimination/unobservable characteristics
B. $1.30 to differences in work experience; $1.20 to discrimination/unobservable characteristics
C. $0.00 to differences in work experience; $2.50 to discrimination/unobservable characteristics
D. $1.50 to differences in work experience; $1.00 to discrimination/unobservable characteristics
E. $2.50 to differences in work experience; $0.00 to discrimination/unobservable characteristics


Answer: A

Economics

You might also like to view...

Beta measure overall risk in the stock market

Indicate whether the statement is true or false

Economics

We might predict that Japan has a comparative advantage compared to Russia in the production of hi-tech electronics because Japan has:

A. more land available to build manufacturing plants on. B. more unskilled labor available for production. C. a climate is more suitable for electronics. D. more advanced electronics technology.

Economics

What action did the owner of the position illustrated above take in the futures or options market?

A. Buy a futures B. Sell a call option on futures C. Sell a futures D. Buy a put option on futures

Economics

In order for an economy to increase its production possibilities, the economy must

A) be very efficient. B) increase inputs. C) increase its wants. D) reduce output.

Economics