In this project, I will analyze the problem of gender inequality in terms of labor income. This problem is important in our society because people with same background and same experience should be treated the same in the same working environment. Women should not be judged based on their biological gender. The data sample used in this project is working individuals between ages 25 and 54 from Current Population Survey, 2012. Sample size contains 999 observations. I will first discuss the predicted signs for the coefficients’ equation based on theoretical reasoning for the empirical methodology part. Next, I will use t-test and F-test to test if the variables are statistically significance. Lastly, I will predict the earnings of some hypothetical
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First, I will interpret the coefficients. Age has a coefficient of 15.42, which means for every unit increase in age, we expect a $15.42 increase in the hourly earnings, holding all else constant. Female has a coefficient of -243.2, which means for every unit increase in female, we expect a $243.2 decrease in the hourly earnings, holding all else constant. Race_dummy1 has a coefficient of 34.08, which means for every unit increase in White people, we expect a $34.08 increase in the hourly earnings, holding all else constant. Race_dummy2 has a coefficient of -160.5, which means for every unit increase in Black people, we expect a $160.5 decrease in the hourly earnings, holding all else constant. Race_dummy3 is omitted because of collinearity. Race_dummy4 has a coefficient of -80.6, which means for every unit increase in Asian people, we expect a $80.6 decrease in the hourly earnings, holding all else constant. Race_dummy5 has a coefficient of 195.1, which means for every unit increase mixed race people, we expect a $195.1 increase in the hourly earnings, holding all else constant. Hispanic has a coefficient of -15.71, which means for every unit increase in Hispanic people, we expect a $15.71 decrease in the hourly earnings, holding all else constant. Ihigrdc has a coefficient of 131.5, which means for every unit increase in highest grade completed, we expect a $131.5 increase in hourly earnings, holding all else constant. Ptime has a coefficient of -222.2, which means for every unit increase in part time jobs, we expect a $222.2 decrease in hourly earnings, holding all else constant. Ch05 has a coefficient of -32.87, which means for every unit increase in number of children in the family from 0 to 5, we expect a $32.87 decrease in hourly earnings, holding all else constant. Ch613 has a coefficient of 86.67, which means for every unit increase in number of children in the family from 6 to
First, I will interpret the coefficients. Age has a coefficient of 15.42, which means for every unit increase in age, we expect a $15.42 increase in the hourly earnings, holding all else constant. Female has a coefficient of -243.2, which means for every unit increase in female, we expect a $243.2 decrease in the hourly earnings, holding all else constant. Race_dummy1 has a coefficient of 34.08, which means for every unit increase in White people, we expect a $34.08 increase in the hourly earnings, holding all else constant. Race_dummy2 has a coefficient of -160.5, which means for every unit increase in Black people, we expect a $160.5 decrease in the hourly earnings, holding all else constant. Race_dummy3 is omitted because of collinearity. Race_dummy4 has a coefficient of -80.6, which means for every unit increase in Asian people, we expect a $80.6 decrease in the hourly earnings, holding all else constant. Race_dummy5 has a coefficient of 195.1, which means for every unit increase mixed race people, we expect a $195.1 increase in the hourly earnings, holding all else constant. Hispanic has a coefficient of -15.71, which means for every unit increase in Hispanic people, we expect a $15.71 decrease in the hourly earnings, holding all else constant. Ihigrdc has a coefficient of 131.5, which means for every unit increase in highest grade completed, we expect a $131.5 increase in hourly earnings, holding all else constant. Ptime has a coefficient of -222.2, which means for every unit increase in part time jobs, we expect a $222.2 decrease in hourly earnings, holding all else constant. Ch05 has a coefficient of -32.87, which means for every unit increase in number of children in the family from 0 to 5, we expect a $32.87 decrease in hourly earnings, holding all else constant. Ch613 has a coefficient of 86.67, which means for every unit increase in number of children in the family from 6 to