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The problem below is about Binary Variables See Regression function below:

by | Nov 29, 2023 | economics

The problem below is about Binary Variables

See Regression function below:

ln(wage) = Beta0 + Beta1GED+Beta2AGE+Beta3AGESQ+B4EDUC+u

GED – general education development (GED = 1, if graduated, 0 otherwise)

AGE – individual age

EDUC – years of education

How to get a model that allows the effect of the GED program to vary between minorities and non-minorities

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