ABSTRACT
J30 = -0.78 —• A white worker with 0 ED is expected to earn -0.78 units /?, = 0.76 —* If ED increases 1 unit, EARNS (nonwhites and whites) increases 0.76 units fi2 = -1.93 —> A nonwhite earns 1.93 units less than a white with the same level of education
Graphing the interpretations indicates that the dummy variable allows for different intercepts for nonwhite and white workers. However, the slopes of the two regression lines are parallel.