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Question: 2 15 points the study of bertrand and hallock 2001...

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2. (15 points) The study of Bertrand and Hallock (2001) compares total compensation among top executives in a large set of U.S. public corporations in the 1990s. Let Male be an indicator variable that is equal to 1 for males and 0 for females. A regression of the logarithm of Earnings onto Male yields In(Earnings) 6.51 +0.43 Male, SER-2.89 (0.01) (0.05) (a) The predicted hourly earnings for top male executives is per hour (Round your response to two decimal places.) (b) The predicted hourly earnings for top female executives is S per hour. (Round your response to two decimal places.) (c) Two new variables, MarketValue the market value of the firm (a measure of firm size, in millions of dollars) and Return -stock return (a measure of firm performance, in percentage points), are added to the regression: In(Earnings) 3.86-0.28Male +0.37In(MarketValue) +0.004 Return, (0.003) (0.03) (0.04) (0.04) n- 46,670, R 0.345 If Market Value increases by 0.78%, what is the increase in Earnings?
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