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hedonic wage equation

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: 17,942

Re: hedonic wage equation

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.

Frequent Contributor
Posts: 108

Re: hedonic wage equation

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: 4,659

Re: hedonic wage equation

Hedonic function depends on fatrate... Hmmm

Super User
Posts: 17,942

Re: hedonic wage equation

Since dependent variable is continuous you can use regression.


proc reg data=have;

model wage = male white age fatrate;

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