8. This regression investigates how gender and region are associated with hourly earnings The dependent variable is the natural log of EARNINGS (learn). The explanatory variables are years of experience (EXP), years of schooling (S), a dummy variable for FEMALE gender, an interaction term for female and years of schooling called (FEMALES), and dummy variables for region where the respondent lives, where the northeast region (REGNE) has been dropped.
How does the marginal effect of an additional year of schooling on EARNINGS differ for males and females? Is the difference statistically significant at a significance level of 5%?
A. Females earn $0.04 less than males for every additional year of schooling and this difference is statistically significant.
B. Females earn 0.017 less than males for every additional year of schooling and this difference is statistically significant.
C. Females earn 4% less than males for every additional year of schooling and this difference is NOT statistically significant.
D. Females earn 4% less than males for every additional year of schooling and this difference is statistically significant.
E. Females earn 0.04 units less than males for every additional year of schooling and this difference is NOT statistically significant.
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