wages_fe_d <- wages_fe_d |>
mutate(ln_wages_l = case_when(
high_grade == 6 ~ wages_fe[1,1] - wages_fe[1,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp ,
high_grade == 7 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[3,1] - wages_fe[3,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp,
high_grade == 8 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[4,1] - wages_fe[4,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp,
high_grade == 9 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[5,1] - wages_fe[5,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp,
high_grade == 10 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[6,1] - wages_fe[6,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp,
high_grade == 11 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[7,1] - wages_fe[7,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp,
high_grade == 12 ~ wages_fe[1,1] - wages_fe[1,2] +
wages_fe[8,1] - wages_fe[8,2] +
(wages_fe[2,1]-wages_fe[2,2])*xp)
) |>
mutate(ln_wages_u = case_when(
high_grade == 6 ~ wages_fe[1,1] + wages_fe[1,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp ,
high_grade == 7 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[3,1] + wages_fe[3,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp,
high_grade == 8 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[4,1] + wages_fe[4,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp,
high_grade == 9 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[5,1] + wages_fe[5,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp,
high_grade == 10 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[6,1] + wages_fe[6,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp,
high_grade == 11 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[7,1] + wages_fe[7,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp,
high_grade == 12 ~ wages_fe[1,1] + wages_fe[1,2] +
wages_fe[8,1] + wages_fe[8,2] +
(wages_fe[2,1]+wages_fe[2,2])*xp)
)
ggplot() +
geom_ribbon(data=wages_fe_d,
aes(x=xp,
ymin=ln_wages_l,
ymax=ln_wages_u,
fill=high_grade), colour=NA, alpha=0.1) +
geom_line(data=wages_fe_d,
aes(x=xp,
y=ln_wages,
colour=high_grade,
group=high_grade)) +
scale_fill_discrete_divergingx(palette = "Zissou 1") +
scale_colour_discrete_divergingx(palette = "Zissou 1") +
labs(x="Experience (years)", y="Wages (ln)", colour="Grade", fill="Grade")