for magz64

Econometric model:

𝑤= 𝛽0 +𝛽1w+𝛽2b+𝛽3as+𝛽4a1539+ 𝛽4a4069+𝜀

Predictions:

dy/dx

d2y/dx2

d2y/dx2

Dependent Variable:

Income (I)

Key independent variables:

Age(a)

β1+ 2β2 Ē>0

β1>0

β2<0

n.a

Other control variables:

White(w)

β3

n.a

n.a

Black (b)

β4

n.a

n.a

Asian (as)

β5

n.a

n.a

Age15_39(age1539)

β6

n.a

n.a

Age40_69(age1539)

β7

n.a

n.a

Dependent variable

Income

Key Independent Variables

Age

Other Control Variables

White

Black

Asian

Age15_39

Age40_69

Mean

Standard deviation

Minimum

25th percentile

Median

75th percentile

Maximum

Income

52847.16

8646.483

36796

46693

50836

58252

74551

Age1539

.33652

.0158256

.291

.328

.336

.345

.396

Age4069

.3739486

.0218118

.279

.363

.375

.384

.43

White

.8020629

.1157772

.269

.719

.8175

.888

.972

Black

.1111743

.0954121

.006

.035

.083

.161

.38

Asian

.04538

.0765542

.006

.017

.027

.047

.567

Race

.9586171

.0477795

.678

.942

.973

.991

1.026

VARIABLES

OLS

clusterSE

OLS

clusterSE

OLS

age1539

87747.242

108811.951*

1.912

[52,664.765]

[61,705.641]

[1.184]

age4069

-129830.041***

-120056.791***

-2.274***

[38,832.259]

[39,283.405]

[0.755]

black

-38421.505

-56706.969

-1.26

-1.581**

[46,937.956]

[41,974.303]

[0.836]

[0.747]

asian

2166.779

7741.906**

-0.093

0.01

[5,134.188]

[3,609.254]

[0.123]

[0.096]

Constant

81842.353***

68790.468***

72194.257**

11.163***

11.282***

[25,643.207]

[1,996.386]

[29,642.889]

[0.035]

[0.545]

Observations

350

350

350

350

350

R-squared

0.994

0.991

0.994

0.991

0.994

Hausman test

Ho: 𝛽re= 𝛽fe

x2 stat= 47.25

p value=0.0000

Conclusion

Reject ho, therefore include fixed effects

F-test

Ho: all state fixed effects statistically insignificant

F-state=110.19

P value=0.0000

Conclusion

Reject ho, therefore include fixed effects