《计量经济学导论》ch7.pptVIP

Chapter 7 ;Qualitative Information Examples: gender, race, industry, region, rating grade, … A way to incorporate qualitative information is to use dummy variables They may appear as the dependent or as independent variables A single dummy independent variable;Graphical Illustration;Dummy variable trap;Estimated wage equation with intercept shift Does that mean that women are discriminated against? Not necessarily. Being female may be correlated with other produc-tivity characteristics that have not been controlled for.;Comparing means of subpopulations described by dummies Discussion It can e