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hedonic wage equation

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Occasional Contributor
Posts: 6

hedonic wage equation

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!

Super User
Posts: 19,770

Re: hedonic wage equation

Posted in reply to graingerad12

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

Frequent Contributor
Posts: 108

Re: hedonic wage equation

Posted in reply to graingerad12
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 ..
Respected Advisor
Posts: 4,919

Re: hedonic wage equation

Posted in reply to graingerad12

Hedonic function depends on fatrate... Hmmm

PG
Super User
Posts: 19,770

Re: hedonic wage equation

Posted in reply to graingerad12

Since dependent variable is continuous you can use regression.

 

proc reg data=have;

model wage = male white age fatrate;

run;quit;
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