We are studying the factors that contribute to unemployment at an individual level. UE, unemployment, is our dependent variable and it is a binary variable that takes the value 1 if an individual is unemployed and 0 if they are employed. We have a random sample and we estimate the following model: UE^= 0.508−0.051educ−0.023urban+0.005age(0.122) (0.012) (0.005) (0.002)n=6214, R2=0.474 where educ = an individual’s years of education urban = a dummy equal to 1 if the individual lives in an urban area and 0 otherwise age = an individual’s age in years What is the correct interpretation of the estimated coefficient on education?
We are studying the factors that contribute to unemployment at an individual level. UE, unemployment, is our dependent variable and it is a binary variable that takes the value 1 if an individual is unemployed and 0 if they are employed. We have a random sample and we estimate the following model: UE^= 0.508−0.051educ−0.023urban+0.005age(0.122) (0.012) (0.005) (0.002)n=6214, R2=0.474 where educ = an individual’s years of education urban = a dummy equal to 1 if the individual lives in an urban area and 0 otherwise age = an individual’s age in years What is the correct interpretation of the estimated coefficient on education?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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We are studying the factors that contribute to
We have a random sample and we estimate the following model:
UE^= 0.508−0.051educ−0.023urban+0.005age(0.122) (0.012) (0.005) (0.002)n=6214, R2=0.474
where
- educ = an individual’s years of education
- urban = a dummy equal to 1 if the individual lives in an urban area and 0 otherwise
- age = an individual’s age in years
What is the correct interpretation of the estimated coefficient on education?
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