Regression table

1. Compile a regression table with each of the following regressions:(a) wage = ß0 + ß1education + ß2age + ß3female + ß4hours + e
(b) lwage = ß0 + ß1education + ß2age + ß3female + ß4hours + e
(c) wage = ß0 + ß1education + ß2age + ß3female + ß4hours + ß5age2 + ß6female * education + e2
(d) lwage = ß0 + ß1education + ß2age + ß3female + ß4hours + ß5age2 + ß6female * education + e
2. Choose the best specification from number 1, citing each of our 4 criteria in specification searches.
3. Interpret ß1 in equations a and b.
4. Interpret ß0, ß3, ß1, and ß6 in equation d.
5. Use a t-test to test if men and women have the same returns to education.
6. Are returns to age increasing, decreasing, or constant? Explain your answer.
7. There are no controls for ability here. How might this effect our regression results?

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