Consider the Population Regression of Log Earnings [Y_i, Where Y_i

Multiple Choice

Consider the population regression of log earnings [Y_i, where Y_i = ln(Earnings_i) ] against two binary variables: whether a worker is married (D_1i, where D_1i=1 if the i^th person is married) and the worker's gender (D_2i, where D_2i=1 if the i^th person is female) , and the product of the two binary variables Y_i = β₀ + β₁D_1i + β₂D_2i + β₃(D_1i×D_2i) + u_i. The interaction term

A) allows the population effect on log earnings of being married to depend on gender
B) does not make sense since it could be zero for married males
C) indicates the effect of being married on log earnings
D) cannot be estimated without the presence of a continuous variable