Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Exercise 17

Use the data in WAGE1.RAW for this exercise.
(i) Use OLS to estimate the equation log(wage) = 0 + 1 educ + 2 exper + 3 exper 2 + u and report the results using the usual format.
(ii) Is exper 2 statistically significant at the 1% level
(iii) Using the approximation find the approximate return to the fifth year of experience. What is the approximate return to the twentieth year of experience
(iv) At what value of exper does additional experience actually lower predicted log(wage) How many people have more experience in this sample