Advanced Placement (AP) College

Consider the following log-wage regression results for women (W) and men (M) where wages are predicted by schooling (S) and age (A).

wW = 2.23 + 0.077Sw + 0.017Aw and wM = 2.33 + 0.0745SM + 0.026AM.

Sample means for the variables by gender are: women average a logged wage of 3.90, 12.7 years of schooling, and 40.8 years-old; men average a logged wage of 4.53, 14.2 years of schooling, and 43.9 years-old. Decompose the raw difference in average logged wages using the Oaxaca-Blinder decomposition. Specifically, decompose the raw difference into the portion due to differences in schooling, differences in age, and the portion left unexplained, possibly due to gender discrimination.

Answers

Answer 1

The portion left unexplained, possibly due to gender discrimination, is 0.461.

How to calculate the value

The raw difference in average logged wages between men and women is:

4.53 - 3.90 = 0.63

Calculate the portion due to differences in schooling:

0.077(14.2 - 12.7) = 0.116

Calculate the portion due to differences in age:

0.017(43.9 - 40.8) = 0.053

The portion left unexplained is the difference between the raw difference and the sum of the explained portions:

0.63 - 0.116 - 0.053 = 0.461

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Scientists believe that the boundary stratum between the Cretaceous and Paleogene periods was caused by an asteroid. What evidence is most consistent with this theory?

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There is strong evidence to support the theory that the boundary stratum between the Cretaceous and Paleogene periods was caused by an asteroid impact. This includes the discovery of a massive crater off the coast of Mexico which dates to the same time period, as well as the presence of large amounts of iridium in sedimentary layers associated with the boundary. Additionally, studies of fossilized marine life indicate a sudden and dramatic extinction event during this time period, which is consistent with the hypothesis of a catastrophic impact. Overall, the evidence strongly suggests that an asteroid impact played a major role in the transition between the Cretaceous and Paleogene periods.
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