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