Essay
You would like to find the effect of gender and marital status on earnings.As a result,you consider running the following regression:
ahei= β0 + β1×DFemmei + β2×DMarri + β3×DSinglei + β4×educi+...+ ui
Where ahe is average hourly earnings,DFemme is a binary variable which takes on the value of "1" if the individual is a female and is "0" otherwise,DMarr is a binary variable which takes on the value of "1" if the individual is married and is "0" otherwise,DSingle takes on the value of "1" if the individual is not married and is "0" otherwise.The regression program which you are using either returns a message that the equation cannot be estimated or drops one of the coefficients.Why do you think that is?
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