Appendix B
F-test for fixed effects
F-test:
I) F-test in a model with wage differentials by place of production (data set 1) and
explanatory variables gender, education, sector, age, and unemployment:
As F (4,4) = 1 the hypothesis that all constant terms are equal could not be rejected.
II) F-test in a model with wage differentials (data set 2) and explanatory variables gender,
education, age, unemployment, and commuting distance:
As F (4,4) = 1 the hypothesis that all constant terms are equal could not be rejected.
36