Using the 526 observations on workers in WAGE1, we include female (a binary variable taking on the value one for femaies and the value zero for males), educ (years of education), exper (years of labor market experience), and tenure (years with the current employer) in an equation explaining wage. For now, we use wage, rather than log (wage), as the dependent variable. The variable wage is measured by averaged hourly earnings (dollar per hour). The population model is β₀ + β₁ + β₂ + β₃ + β₄ + u
(i) Write out the estimated equation. (ii) What is the average difference in hourly wage between a man and a woman who have the same levels of educ, exper, and tenure? (iii) How can we actually test for wage discrimination?