Dummies for Multiple Categories o We can use dummy variables to control for something with multiple categories e Suppose everyone in your data is either a Hs dropout, Hs grad only, or college grad To compare hS and college grads to Hs dropouts, include 2 dummy variables o hsgrad=1 if HS grad only o otherwise. and colgrad- 1 if college grac d, O otherw Economics 20- Prof anderson 5Economics 20 - Prof. Anderson 5 Dummies for Multiple Categories We can use dummy variables to control for something with multiple categories Suppose everyone in your data is either a HS dropout, HS grad only, or college grad To compare HS and college grads to HS dropouts, include 2 dummy variables hsgrad = 1 if HS grad only, 0 otherwise; and colgrad = 1 if college grad, 0 otherwise