Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Researchers studied the labour force participation of married women. Let Y = 1 if a woman is employed or looking for work and Y

image text in transcribed
image text in transcribed
5. Researchers studied the labour force participation of married women. Let Y = 1 if a woman is employed or looking for work and Y = 0 otherwise. Inc is income (in 1000s) coming from other than the woman's labour earnings, Educ is years of schooling, Exp denotes years of working experience, and Child6 is the dummy variable that equals one if the woman has any children younger than 6 years old. The estimate of the probit model is D(-0.494 - 0.0091Inc + 0.1Educ + 0.08Exp - 0.0062Exp - 0.520Child6) where Exp is the square of Exp. (a) What is the probability of a woman being in the labour force if the woman has L20, 000 from non-labour earnings, 12 years of education, 6 years of working experience, and has a child younger than 6 years old? (2 marks) (b) What is the marginal effect of Educ for a woman with L20, 000 non-labour earnings, 12 years of education, 6 years of working experience, and a child younger than 6 years old? (2 marks) (c) What is the marginal effect of having a child younger than 6 for a woman with L20, 000 other source of income, 12 years of education, and 6 years of working experience? (3 marks) (d) What is the marginal effect of Exp for a woman with L20, 000 other source of income, 12 years of education, 3 years of working experience, and a child younger than 6 years old

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: David Colander

7th Edition

0073402869, 9780073402864

More Books

Students also viewed these Economics questions

Question

=+c. How should the difference be recorded?

Answered: 1 week ago

Question

please dont use chat gpt 5 3 4 . .

Answered: 1 week ago

Question

8. How can an interpreter influence the message?

Answered: 1 week ago