* Finding Median Hourly Wages
*
* Keywords:
* regression, ols, dummy, anova, hourly, wages
*
* Description:
* We illustrate how to estimate a Model for Hourly Wages and find
* Median Hourly Wages for male and female workers
*
* Author(s):
* Skif Pankov
*
* Source:
* Damodar N. Gujarati and Dawn C. Porter, Basic Econometrics - 5th Edition
* McGraw-Hill International Edition, Chapter 9, Example 9.8 (page 298)
*
sample 1 528
* Reading the datafile and naming variables
read(data_9.5.shd) wage educ fem nwh
* Generating a log of wages
genr lnw = log(wage)
* Running an OLS regression of wage on fem dummy and saving estimated coefficients in a variable beta
ols lnw fem / anova coef = beta
* Generating an estimated median hourly earning of a male worker and
* outputting it
gen1 mwm = exp(beta:2)
print mwm
* Generating an estimated median hourly earning of a female worker and
* outputting it
gen1 mwf = exp(beta:2 + beta:1)
print mwf
stop