Econometrics

Posted by Xiang on Jun 19, 2013; 5:19pm
URL: http://discussion-forum.276.s1.nabble.com/Econometrics-tp7582622.html

A researcher runs Yi = β0 + β1X1,i + β2Di+ β3 Di X1,i  +ui       where  is the salary of worker i, X1,i  is the years of experience, and Di is a dummy that takes the value of 1 if the worker is female and 0 otherwise. Which of the following would indicate that female workers’ salary increases at a slower rate with years of experience.
 
a)      β2 < 0    
b)      β2  > 0      
c)      β3 < 0    
d)      β3 > 0

I really don't understand how to solve this. Please help. Steps please :)

thanks