Basic Econometrics 5th Edition by Damodar Gujarati,Dawn Porter

تمرين 2

Consider the following regression results ( t ratios are in parentheses):*
where Y = wife's annual desired hours of work, calculated as usual hours of work per year plus weeks looking for work
X 2 = after-tax real average hourly earnings of wife
X 3 = husband's previous year after-tax real annual earnings
X 4 = wife's age in years
X 5 = years of schooling completed by wife
X 6 = 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
X 7 = attitude variable, 1 = if the respondent's husband favored his wife's working, 0 = otherwise
X 8 = number of children less than 6 years of age
X 9 = 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 6 and X 7 Are these dummies statistically significant Since the sample is quite large, you may use the "2- t " rule of thumb to answer the question.
c. Why do you think that age and education variables are not significant factors in a woman's labor force participation decision in this study
Table 9.8 Data Matrix for Regression in Exercise 9. 3 * Preliminary estimates
Source: Damodar Gujarati, "The Behaviour of Unemployment and Unfilled Vacancies: Great Britain, 1958-1971," The EconomicJournal, vol. 82, March 1972, p. 202.