Consider the Population Regression of Log Earnings [Yi,where Yi =

Multiple Choice

Consider the population regression of log earnings [Yi,where Yi = ln(Earningsi) ] against two binary variables: whether a worker is married (D1i,where D1i=1 if the ith person is married) and the worker's gender (D2i,where D2i=1 if the ith person is female) ,and the product of the two binary variables Yi = β0 + β1D1i + β2D2i + β3(D1i×D2i) + ui.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