Consider the regression model
wage = β1 + β2 marrmale + β3 marrfem + β4 singfem + β5 edu + u,
where
- marrmale = 1 for married males (0 otherwise),
- marrfem = 1 for married females (0 otherwise),
- singfem = 1 for single females (0 otherwise),
- edu = years of education.
The estimated values are
β1 = 1.00,
β2 = 1.53,
β3 = 0.99,
β4 = 1.28,
β5 = 0.77.
What is the predicted wage difference between married males and married females
[ĥwage | marrmale=1, marrfem=0] – [ĥwage | marrmale=0, marrfem=1]?
Round your answer to two decimal places.
Your Answer: