<p>USING STATA:</p><p>Given the provided small sample of observations from 2002 cps annual demographic file, containing 1,000 observations with the following variable for individuals who work at least 30 hours per week.</p><p>1. Age = age in years</p><p>2. Married = 1 if person is married</p><p>3. Female = 1 if female</p><p>4. hsdiploma = 1 if person has a high school diploma</p><p>5. somecollege = 1 if person has attended college</p><p>6. Associate = 1 if person has an associate degree</p><p>7. Bachelors = 1 if person has a bachelor’s degree</p><p>8. Masters = 1 if person has a master’s degree</p><p>9. Doctorate = 1 if person has a Ph.D. or other doctorate degree</p><p>10. Professional = 1 if person has a graduate professional degree </p><p>(no high school diploma is the omitted category of education)</p><p>11. White = 1 if person is White, non-Hispanic</p><p>12. Black = 1 if person is Black, non-Hispanic</p><p>13. hispanic = 1 if person is Hispanic</p><p>14. Immigrant = 1 if person was born abroad, and not of US parents</p><p>15. Union = 1 if working on a union job</p><p>16. Wage = hourly earnings in dollars</p><p>17. Hours = number of hours worked per week</p><p><u>Question:</u></p><p><u></u>1. Do persons with Masters Degrees earn more than those with Bachelor’s degrees?</p><p>2. Do persons with Doctorate degrees earn twice as much as those with Bachelor’s degrees? </p><p>3. Does the effect of education vary by gender? Construct any interaction variables you need and test the joint hypothesis using appropriate restricted and unrestricted regressions.</p><p>4. Does the effect of immigrant status vary by gender? Test this hypothesis and report the magnitudes of the effects of male and female immigrants on wages.</p>
