seasonal patterns 9.2. Consider the following regression results ( ratios are in
ID: 3349916 • Letter: S
Question
seasonal patterns 9.2. Consider the following regression results ( ratios are in parentheses) +104.97Xy- 0.026Xy + (3.70) (-3.80) =1286 t= (4.67) 1.20x-hi + (0.24) 0.69Xy (0.08) -19.47Xe 266.06X7 (-0.40 6.94) 118.64X 110.61X (-3.04) (-6.14) R2 =0.383 n=1543 where Y = wife's annual desired hours of work, calculated as usual hours of work per year plus weeks looking for work = after-tax real average hourly earnings of wife Xs = husband's previous year x, = wife's age in years Xs = years of schooling completed by wife after-tax real annual earnings = attitude variable, 1 = if respondent felt that it was all right for a woman to work if she desired and her husband agrees, 0 otherwise Xy = attitude variable, 1 if the respondent's husband favored his wife's working, 0 = otherwise Xs = number of children less than 6 years of age = number of children in age groups 6 to 13 a. Do the signs of the coefficients of the various nondummy regressors make economic sense? Justify your answer. b. How would you interpret the dummy variables, X, and X? Are these dummies statistically significant? Since the sample is quite large, you may use the "2-f rule of thumb to answer the question.Explanation / Answer
Part A: Yes. Most of the coefficients here make sense as we can see that the working hour of women does depend on their social and personal life problems.
Part B: the behaviour of coefficients of X6 and X7 are opposite in nature. The coefficient of x7 is intuitive but the coefficient of excess is Counter intuitive and the sense that when the husband supports and and wife believes that women should work, the coefficient is a still negative that implies that this believes reduce their working hour. Yes these commissions are statistically significant.
Part C: the main factory for working hours of women is their social and economic motivation. As there are many types of works all ages and all educational levels one can find a job if he or she wants so that is the main reason that those variables are not significant.
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