* R. Carter Hill, William E. Griffiths and Guay C. Lim, * Principles of Econometrics, Third Edition, Wiley, 2008. * Chapter 7.5 The Wage Equation with a Log Dependent Variable SAMPLE 1 1000 READ (cps_small.shd) wage educ exper female black white midwest south west * Equation estimation - middle of page 185. GENR lwage=LOG(wage) OLS lwage educ female / LOGLIN * Estimate a percentage differential between male and female workers * top of page 186. TEST 100*(EXP(female)-1) * Interaction and quadratic terms - page 186. GENR educexp=educ*exper OLS lwage educ exper educexp / LOGLIN * For a person with 16 years education estimate the percentage * increase in wages for one additional year of experience. TEST 100*(exper+educexp*16) * Additional work GENR exper2=exper**2 OLS lwage educ exper exper2 educexp / LOGLIN * The percentage increase in wages for one additional year of * experience for a person with 16 years education and 8 years * experience. TEST 100*(exper + 2*exper2*8 + educexp*16) STOP