Econometrics Essay Example | Topics and Well Written Essays - 750 words - 1

Econometrics - Essay Example Moreover, private sector workers under unions, earn 1.8599 dollars more, due to their access collective bargaining power. In a nutshell, a unionized private worker will earn 2.2951 dollars higher than workers in other sectors. The model estimated above was less fit as the included variables explained only 2.96%, (and 2.55% when adjusted for degrees of freedom), of all changes occurring to earnings(R-squared = 0.0296). To improve the fitness, the interaction of union with gender (female) was included in the model The extended model shows that, in general female workers earn 5.6292 dollars less than their male counterparts. However, female workers with collective bargaining power (joined unions), earn 1.5519 more. In a nutshell it can be concluded that a female worker in the private sector and having access to collective bargaining power will earn 1.0179 (0.6547*1- 0.6195*1 -0.5692*1 +1.5519*1) more than their male counterparts in other