Suppose you estimate a logit model explaining the probability of entering the labor force and you convert the estimated coefficients into the following estimated marginal effects $Lab\widehat {or ~F}orce _ { i } = 1.67 + 0.42 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
You should conclude that
A)men are estimated to be 306 percent more likely than women to enter the labor force.
B)men are estimated to be more likely than women to enter the labor force.
C)each additional year of education increase the likelihood of entering the labor force by 483 percent.
D)men are estimated to be 3.06 percent more likely than women to enter the labor force.

Question

Suppose you estimate a logit model explaining the probability of entering the labor force and you convert the estimated coefficients into the following estimated marginal effects $Lab\widehat {or ~F}orce  _ { i } = 1.67 + 0.42 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
You should conclude that
A)men are estimated to be 306 percent more likely than women to enter the labor force.
B)men are estimated to be more likely than women to enter the labor force.
C)each additional year of education increase the likelihood of entering the labor force by 483 percent.
D)men are estimated to be 3.06 percent more likely than women to enter the labor force.

Quizplus · Accepted Answer

The negative coefficient for "Female" (-3.06) indicates that being female is associated with a lower probability of entering the labor force compared to men, but it does not quantify this as a 306% or 3.06% difference. The correct interpretation is that men are estimated to be more likely than women to enter the labor force, without specifying the exact percentage.

Suppose You Estimate a Logit Model Explaining the Probability of Entering