Question

The null hypothesis when testing fr o rral signfin A-0 d) (2 pts.) Briefly explain why B is not contaminated by the influence of Z when using the FWL Theorem. Question 3 (12 pts.) A researcher uses a dataset with three variables: annual income, I, number of years of work experience, Ei, and the categorical variable gender, Giu with two categories: female and male. The researcher is interested in estimating the gender wage gap at the start of workers' career and how it changes with work experience. a) (2 pts.) Define the indicator variable for gender when the benchmark group is males. (2 pts.)Assume that the benchmark group is males. Write down the PRF that corresponds to both genders earning the same annual income at the start of their careers but receiving different annual increments for each additional year of work experience. b) c) (2 pts.) Interpret each of the coefficients of the PRF in b).