MODEL LINEAR QUADRATIC RECIPROCAL LOG-LOG LOG-LINEAR LINEAR-LOG mean of educ median of educ mean of wage 13.81 13.00 20.63
b1 -7.13 6.06
b2 2.01 0.07
estimated wage when educ = 13.81 20.63 19.42 21.11 17.98 17.00 21.09
estimated wage when educ = 13 34.33 35.85 24.15 26.75 31.39 29.64
30.32 -127.18 0.29 1.59 -34.86 0.99 0.09 21.31
MODEL
b1
b2
Estimate of Marginal Effect Estimate of Elasticity when educ = mean (13.81) 2.01 1.93 0.67 1.29 1.53 1.62 1.35 1.38 0.44 0.99 1.24 1.06
LINEAR QUADRATIC RECIPROCAL LOG-LOG LOG-LINEAR LINEAR-LOG
-7.13 6.06
2.01 0.07
30.32 -127.18 0.29 1.59 -34.86 0.99 0.09 21.31
- The marginal effect gives the dollar change in hourly wage from an additional year of education. - The elasticity gives the percentage change in hourly wage from a percentage ...view middle of the document...
01 1.82 0.75 2.04 2.83 1.64 0.76 0.66 22.43 0.99 1.17 0.72
LINEAR QUADRATIC RECIPROCAL LOG-LOG LOG-LINEAR LINEAR-LOG
-7.13 6.06
2.01 0.07
30.32 -127.18 0.29 1.59 -34.86 0.99 0.09 21.31
- The marginal effect gives the dollar change in hourly wage from an additional year of education. - The elasticity gives the percentage change in hourly wage from a percentage increase in education.
One additional year of education is estimated to increase the hourly wage, on average, by - $2 for LINEAR - $1.8 for QUADRATIC - $0.8 for RECIPROCAL - $2 for LOG-LOG - $2.8 for LOG-LINEAR - $1.6 for LINEAR-LOG A 1% increase in years of education is estimated to increase the hourly wage, on average, by - 0.8% for LINEAR - 0.7% for QUADRATIC - 22.4% for RECIPROCAL - 1% for LOG-LOG - 1.2% for LOG-LINEAR - 0.7% for LINEAR-LOG
MODEL
b1
b2
Interpretation of b 1 with no education, average wage is estimated to be -$7 with no education, average wage is estimated to be $6 average wage is estimated to approach $30 as education increases to very high levels
Interpretation of b 2 for each additional year of education, average wage is estimated to increase by $2 average wage increases with education at an increasing rate average wage increases with education at a decreasing rate
LINEAR
-7.13
2.01
QUADRATIC
6.06
0.07
RECIPROCAL
30.32 -127.18
LOG-LOG
0.29
0.99
average wage is estimated to be $1 with one year of education
average wage is estimated to increase by 1% for each percentage increase in education average wage is estimated to increase by 9% for each additional year of education average wage is estimated to increase by $0.21 for each percentage increase in education
LOG-LINEAR
1.59
0.09
average wage is estimated to be $5 with no education
LINEAR-LOG
-34.86
21.31
average wage is estimated to be -$35 with one year of education