topic Re: hedonic wage equation in SAS Programming

hedonic wage equation

graingerad12 — Sat, 23 Apr 2016 16:09:44 GMT

Hello! I was just wondering if someone could please help me with a problem. I am trying to use OLS to estimate a linear hedonic wage equation with wages as a function of gender, race, age, age^2, and fatality risks.

the variables are defined as:

wage = worker's hourly wage rate

male = 1 if worker is male and =0 otherwise

white = 1 if worker's race is white = 0 otherwise

age = workers age in years

fatrate = worker's risk of fatality measured in terms of deaths per 100,000 workers.

how would the code even look like? Do i need to create a matrix, and if so, how?

thank you!

Re: hedonic wage equation

Reeza — Sat, 23 Apr 2016 17:58:35 GMT

Look at proc REG or GLM.

The documentation has good examples.

You do not need to create a matrix, a SAS dataset is enough to get started.

http://www.ats.ucla.edu/stat/sas/webbooks/reg/chapter1/sasreg1.htm

Re: hedonic wage equation

pearsoninst — Sat, 23 Apr 2016 18:05:54 GMT

I see there are Binary Variables and OLS mainly used in LR model (as per i know ) You can check Logistic regression i you wish to ..

Re: hedonic wage equation

PGStats — Sat, 23 Apr 2016 18:48:46 GMT

Hedonic function depends on fatrate... Hmmm

Re: hedonic wage equation

Reeza — Sat, 23 Apr 2016 22:00:11 GMT

Since dependent variable is continuous you can use regression.

proc reg data=have;

model wage = male white age fatrate;

run;quit;