The sample is further limited to those who worked in private business and excludes most self-employed individuals. This analysis only includes workers from age 22 to 59, which are recognized as prime working years. The Table summarizes the results of the regression model for wages. The adjusted R 2 is 0.369 suggesting that this model explains about 37 percent of the variation in wages. Throughout the discussion that follows, additional variables will be suggested that could account for some of the other 63 percent of variation.
Age is included in the model as a proxy for experience.
The coefficient is positive and highly significant. The second independent variable is usual hours of work. The coefficient is positive and highly significant, suggesting that those usually working more hours earn more income. Education Respondents are classified according to the highest level of education completed. All categories are positive and highly significant.