Problem # 3

You have estimated an earnings function, where you regressed the log of earnings on two binary variables, one for gender and the other for marital status.

(a) Write down the regression equation such that the intercept corresponds to a single male, without allowing for interaction between marital status and gender.

(b) According to the regression equation from part a, what are the average log earnings of:

Single men

Single women

Married men

Married women