Suppose that a researcher,using wage data on 250 randomly selected male workers and 280 female worker,estimates the simple model
Where Wage ismeasured in dollars per hour and Male is a binary variable that is equal to 1if the person is a male and 0 if the person is a female. Define the wage gendergap as the difference in mean earnings between men and woman.
Wage= 12.52 + 2.12Male (3)
i) Interpret theslope and the intercept in the model (3).
ii) What is theestimated gender gap?
iii) Write the(null) hypothesis testing for the gender gap.
ii) Anotherresearcher uses these same data but regresses Wages and Female, a variable thatis equal to 1 if the person is female and 0 if the person is a male. What isthe regression estimates calculated from this regression? Show your work.
Wage = ___ +___Female