Gender Inequality In Terms Of Labor Income

1764 Words 7 Pages
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 …show more content…
can be positive or negative. Although women tend to earn less wage in the past, women and men have the same background or ability can receive equal pay now. This is also the question that this project will test on. Dummy variables for race are Asians and white may earn more than black people, but it is hard to say about the relationship. I predict < 0. Hispanic people may work hard, but many of them are probably immigrants and they don’t have enough knowledge to do higher ranking jobs. Thus, they may earn less income. I predict , because as highest grade completed increases, the hourly earnings will increases too. because part time workers work less time than full time workers, thus earning a lower wage. I predict because children under 5 usually take a lot of time to take care; parents will not force on their job too much. may depends on the family. And because their children are now almost fully grown. Less energy and attention is needed by the children. Therefore, labor income and children age from 14 to 17 should have a positive relationship. because married people can share their debts with their spouse and help each other. Their spouses can be the incentive to make them work hard. So their wages can be higher. because single people can have more financial debts and loans to consider and they don’t …show more content…
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,

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