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Here is the output for testing whether male earns less in a particular job market:

Income=b1*education+b2*male+b3*male*education

where b1=100 (significant), b2=-50 (insignificant), b3=10 (insignificant)

How should I interpret whether this type of job is against male? From the coefficient, I knew that

  1. if female, income=100*educ;
  2. if male, income=100*educ-50+10*educ=110*educ-50,

but my concern here is b2, b3 both are insignificant, so how do I interpret this whole story?

rcs
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user001
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1 Answers1

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This isnt the right place for this question, but you could look at it that holding everything else constant education has a positive effect on income. Also, you would need more data to do this accurately, there could be some sample biases, or the effects of one filed could be picked up in another. For example, maybe males are more likely to have higher education for this field. Another interesting way to do this is to estimate two separate equations. One for female and one for male and then estimate what males would have made had they been female and vise versa.

John Kane
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