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I am fairly new to econometrics and have an assignment that I would like some clarification with.

My regression involves regressing wage on various variables including dummy variables for white, black and asian. I have run separate regressions using subsamples for specific races so far.

I am then asked to suggest a model that allows one to test the nul hypothesis of coefficient constancy across the three subsamples and carry out

the test using the appropriate F statistic.

I think this is the correct strategy, however I would greatly appreciate if someone could clarify this:

1. Run the regression of y on all of the independent variables and 2 of the races (to avoid dummy variable trap)

2. Run the regression of y on all of the indepedent variables apart from the races.

Do an F test for joint restrictions using SSRr, SSRur or R^2 restricted and R^2 unrestricted.

I would greatly appreciate if someone could let me know if this is the correct method or if I need to do some kind of chow test. Could both methods be acceptable?

Thanks!

All the best.

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# Econometrics F Test Dummy Variables Help

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