To account for potential heterogeneity by race in the effect of education and marital status, we run a model which regresses log wages of men on education, experience, tenure, married, black and urban, and add two interaction terms: educ*black and married*black. We are interested in the effect of being married on wages separately for white and black men. Refer to point estimates, not statistical significance. Ceteris paribus, being married increases wages by:
a. 18.6% for married white men and 10.6% for married black men
b. 18.6% for married white men and 8% for married black men
c. 26.6% for all married men
d. 18.6% for married white men and 26.6% for married black men
reg lwage educ exper tenure* married black urban edu_ mar
Source | ss df MS Number of obs = 750 24.53 F(9, 740) Prob > F R-squared Adj R-squared Root MSE = Model 29.8543032 9 3.31714481 740 .135208941 = 0.0000 0.2298 Residual 100.054616 = = 0.2204 Total 129.90892 749 .17344315 = .36771
lwage Coef. Std. Err. t P>|tI [95% Conf. Interval] educ .0676412 .0072418 9.34 3.96 2.93 -1.75 3.95 -0.00 0.000 .0534243 .0818582 exper .0145434 .0036735 0.000 .0073316 .0217552 tenure .0268441 .0091462 0.003 .0088885 .0447997 tenure2 married / black -.0009317 .000531 .047169 0.080 0.000 0.997 -.0019741 .0001108 .1864815 .0938806 .2790825 -.0010381 .3201666 -.6295812 .6275049 urban | edu*black | mar*black cons .1881293 -.023114 .0225228 -1.03 0.305 -.0673302 .0211023 .0802559 .1217929 0.66 40.31 0.510 -.1588448 .3193566 5.310184 .1317303 0.000 5.051575 5.568794