Need help ASAP, will give thumbs up: Consider an empirical wage equation of the form: log(W) = a + b(EDUC) + c(EXP) + d(EXPSQ) + u where the components are defined as: W = hourly wage rate log() is natural logarithmic function EDUC = completed years of school EXP = work experience EXPSQ = years of work experience squared (i.e. EXP times EXP) u = unobservable determinants of the hourly wage rate With data on the relevant variables for a sample of workers, the parameters a, b, c, and d can be estimated. QUESTION: What does human capital theory predict about the parameters of this wage equation? ANSWER CHOICES: b>0, c>0, d>0 b>0, c>0, d<0 b>0, c<0, d>0 b<0, c>0, d<0 b<0, c<0, d>0
Need help ASAP, will give thumbs up: Consider an empirical wage equation of the form: log(W) = a + b(EDUC) + c(EXP) + d(EXPSQ) + u where the components are defined as: W = hourly wage rate log() is natural logarithmic function EDUC = completed years of school EXP = work experience EXPSQ = years of work experience squared (i.e. EXP times EXP) u = unobservable determinants of the hourly wage rate With data on the relevant variables for a sample of workers, the parameters a, b, c, and d can be estimated. QUESTION: What does human capital theory predict about the parameters of this wage equation? ANSWER CHOICES: b>0, c>0, d>0 b>0, c>0, d<0 b>0, c<0, d>0 b<0, c>0, d<0 b<0, c<0, d>0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need help ASAP, will give thumbs up:
Consider an empirical wage equation of the form:
log(W) = a + b(EDUC) + c(EXP) + d(EXPSQ) + u
where the components are defined as:
W = hourly wage rate
log() is natural logarithmic function
EDUC = completed years of school
EXP = work experience
EXPSQ = years of work experience squared (i.e. EXP times EXP)
u = unobservable determinants of the hourly wage rate
With data on the relevant variables for a sample of workers, the parameters a, b, c, and d can be estimated.
QUESTION: What does human capital theory predict about the parameters of this wage equation?
ANSWER CHOICES:
b>0, c>0, d>0
b>0, c>0, d<0
b>0, c<0, d>0
b<0, c>0, d<0
b<0, c<0, d>0
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