Can you help me with these? 1. In this question we want to explore the importanc

Question

Can you help me with these?

1. In this question we want to explore the importance (or lack thereof) of unionization on household earnings. In particular some economic theories suggest that collective bargaining (such as unionization matters more for traditionally marginalized groups female and minority workers. Consider the models Bo BiH Agei 82W Agei wi (1) Farm Income Fam Income i 3Bo BiH Agei B2 WAgei B3 HUnioni BAWUnioni ui (2) where FamIncomei is a family's annual income, HAgei is the husband's age, WAgei is the wife's age, HUnioni is a dummy variable indicating that the Husband is in a union, and WUnioni is a dummy variable for the wife's union status. Suppose average family income in the sample is $50,000 Estimating these models using OLS gives the following results: (1) (2) HAge 90.8 205 101 (125) Age 495 322 (112) 134 Union 1805 (1351) WUnion 8972 (1594) 24164 Constant 2380 0.0173 0.0441 2574 2574

Explanation / Answer

d) Family's annual income will decrease 1805 unit when the husband is in a union,

e) On an average, Family's annual income will increase (-1805+8972)=7167 unit when both the husband and wife are in a union.

f) Before unionization R2=1.73% and after unionization R2=4.41%, since the coefficient of determination R2 increases significantly,So the coefficients on unionization are jointly significant.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---