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.
As shown in the Table, the coefficients for wages generally increase as the level of education increases. The interpretation of these coefficients is the difference in annual earnings of a person having this level of education compared to someone with less than a high school diploma. It should be noted that the two associate degree categories have different coefficients. One possible explanation is that since academic associate degrees are primarily intended to prepare people to enter four-year degree programs, having this as one s highest degree suggests that one s education is still not complete. In contrast, associate degree programs in occupational or vocational subjects give students training in a specific occupation and are seen as a terminal degree.