Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 9

Confirm the partialling out interpretation of the OLS estimates by explicitly doing the partialling out for Example. This first requires regressing educ on exper and tenure and saving the residuals, r1. Then, regress log(wage) on r1. Compare the coefficient on r1 with the coefficient on educ in the regression of log(wage) on educ, exper, and tenure.

Step 1 of 9

First, make column of “log (wage)” by going to Calc > Calculator. In the appeared dialog box, enter values as shown below: