Problem: The following regression model has been obtained using data from 500 individuals from the United Kingdom in year 2015:
(Standard errors in parentheses) where wage= hourly wage, educ= years of education, exper= years of experience and South is a binary dummy variable which takes the 3 value 1 if the individual lives in the South and 0 if not.
All Gauss-Markov assumptions are assumed to hold. For this dataset
Give the correct answer with explanation and calculation