There are two OLS regression specification
Yi = aSexi + ui (1)
Yi = b Malei + c Femalei +
ui(2)
a, b, c, are constants.
Sexi = 1 if the person is Female, and 0 otherwise.
Malei = 1 if Sexi = 0, Femalei = 1
if Sexi = 1, and both are 0 otherwise.
Why are neither regression(1) nor regression(2) directly tell
you if the difference in Yi between Males and Females is
statistically significant?
What would be...