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Subhasis Swain

Econ 210

The data set for the wages and other variables has 1318 observations. Out of the 1318 observed all of them were employed and hence had wages. The average wage was $17.84 per hour with a standard deviation of 12.34 and range of wages from $0 to $72.115. The range of ages for this working sample was between 18 and 72 with an average age of 40.95 years. A median wage of $14.82, which is less than the mean, suggests a positive skewness, meaning that there are a small of number of people with high wages.

The determinants of wage that were examined include the education (measured in units between 11 and 15.33) and college (only whether they attended or not) but we also looked at some factors that differentiated the observations such as gender, race, age and region to see whether in this society these variables have an effect on the wage or not. The average number of units of education among the 1318 observations was 13.48 with a standard deviation of 0.911 and a range between 11 and 15.33. Only about 40 percent of the people went to college. 7.2 percent of the people indicated that they were white while about 55 percent were female. Regionally, 22.6 percent of the people were from the North-East, 28.75 percent of the people from the South and 27.84 percent of the people were from the West.

Examining bivariate statistics, it can be seen that there is a moderate positive correlation(r=0.47) between wage and education that is highly significant (p<0.05). There also exist highly significant (p<0.05) low positive correlation(r=0.13, 0.09) between age(considering ages and ages squared) and wages Since these were the only continuous dependent variable we were examining, the rest of the bivariate relationships were determined using T-tests. The bivariate statistics reveal that attending some college had a significant difference on the wages. We conducted an f-test to see if there was a difference in the variances. The test proved...