use "G:\My Data\Stata Data\WAGE1.DTA", clear /*you have to specify your data source address*/ /*Dummy variables*/ /*generating new variables*/ gen edufem= educ* female gen femwage= wage* female gen male=1 if female==0 gen malewage=wage*male /*Draw graph*/ twoway scatter femwage malewage educ /*this commnand is for STATA ver 8.0*/ /*Regression*/ reg wage educ female hettest ovtest reg wage educ female edufem hettest ovtest reg wage educ exper tenure nonwhite female married numdep smsa northcen south west construc ndurman trcommpu trade services profserv profocc clerocc servocc hettest ovtest /* parameter restriction tests*/ test smsa= northcen= south= west test construc= ndurman= trcommpu= trade= services= profserv= profocc= clerocc= servocc