RELATIONSHIP BETWEEN STARTING SALARY AND CATEGORICAL VARIABLES

Authors

Abstract

The present study aims to highlight the different phases of the econometric model construction process, namely: specification, data characterization, estimation, diagnosis, and interpretation of estimated parameters, based on the analysis of the relationship between a discrete variable (initial salary) and two categorical variables (gender and educational level). Assuming that variations in wages are expressed in percentages and that β is the coefficient that, also in percentage terms, explains the variations that occur per unit in the independent variables and that explain the dependent variable, we proceeded to calculate the logarithms of the initial salary, considering the size of the values in which the salaries are expressed, which are normally large. The asymptosis of the sample allowed us to obtain a normal distribution for Ln salary observations, guaranteeing the assumption of linearity between the variables analyzed, namely between starting salary, gender, and educational level.

Published

2024-06-29

How to Cite

Sanches-António, L. D. (2024). RELATIONSHIP BETWEEN STARTING SALARY AND CATEGORICAL VARIABLES. International Journal of Economic Perspectives, 18(1). Retrieved from https://ijeponline.org/index.php/journal/article/view/530

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Section

Peer Review Articles