Welcome to 'Introduction to Econometrics' course !
This lecture introduces dummy variables, a technique for incorporating qualitative information into regression models. It starts with the example of a wage function and the question of whether gender discrimination exists in the labor market. The lecture explains how to create dummy variables and incorporate them into the model. It also distinguishes between ANOVA and ANCOVA models:
ANOVA: Only includes qualitative variables
ANCOVA: Includes both qualitative and quantitative variables
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#DummyVariables #QualitativeData #ANOVAmodel #ANCOVAmodel