Suppose you estimate a logit model explaining the probability of entering the labor force and you get the following estimated coefficients $Lab\widehat {or ~F}orce _ { i } = 4.83 + 1.27 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
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 get the following estimated coefficients $Lab\widehat {or ~F}orce  _ { i } = 4.83 + 1.27 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
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 coefficient for "Female" is negative, indicating that being female is associated with a lower probability of entering the labor force compared to men. The magnitude of the coefficient (-3.06) does not directly translate to percentages in logit models without further calculation, making B the correct interpretation.

Suppose You Estimate a Logit Model Explaining the Probability of Entering