ECONOMETRICS: Using the information in picture 3a),Fill in the cells in the table below by providing the predicted log wage for each category: Domestic Workers (Min wage changed)Non-Domestic Workers (Min wage did not change)Before After VariableLabelLog hourly wage=1 if After Minimum Wage Law takes effect=1 if Domestic Service WorkerloghwagepostdomesticpostXdomInteraction: Post X DomesticI run a differences-in-differences regression to see if the minimum wage did indeed raisethe wages of domestic workers (i.e. was the law enforced, which is not obvious!):loghwage |Coef.Std. Err.tP>|t|[95% Conf. Interval].0319430.000.0934516post |domestic |.15607984.89.218708-.7097982.0478374-14.840.000-.8035892-.6160071postXdom ||.1339875.06914461.940.053-.0015788.2695537cons1.568741.022535469.610.0001.5245581.612924

We are going to calculate log normal wages in both the cases to answer this question.

Answered: Fill in the cells in the table below by…

Fill in the cells in the table below by providing the predicted log wage for each category: Domestic Workers (Min wage changed) Non-Domestic Workers (Min wage did not change) Before After

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 4CQQ

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Question

ECONOMETRICS: Using the information in picture 3a),

Fill in the cells in the table below by providing the predicted log wage for each category:

	Domestic Workers (Min wage changed)	Non-Domestic Workers (Min wage did not change)
Before
After

Variable
Label
Log hourly wage
=1 if After Minimum Wage Law takes effect
=1 if Domestic Service Worker
loghwage
post
domestic
postXdom
Interaction: Post X Domestic
I run a differences-in-differences regression to see if the minimum wage did indeed raise
the wages of domestic workers (i.e. was the law enforced, which is not obvious!):
loghwage |
Coef.
Std. Err.
t
P>|t|
[95% Conf. Interval]
.031943
0.000
.0934516
post |
domestic |
.1560798
4.89
.218708
-.7097982
.0478374
-14.84
0.000
-.8035892
-.6160071
postXdom |
|
.1339875
.0691446
1.94
0.053
-.0015788
.2695537
cons
1.568741
.0225354
69.61
0.000
1.524558
1.612924

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