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Back to the honors students! Another student writing an honors thesis this year examined the effect of a negative trade shock (potentially leading to some
Back to the honors students! Another student writing an honors thesis this year examined the effect of a negative trade shock (potentially leading to some unemployment) on mental health. Suppose he regressed a mental distress index on years of education ("education"), an indicator for whether the person works in an industry hit by the trade shock ("exposed"), and an interaction term between "education" and "exposed". Suppose he got the following output: Model: Dependent Variable: Mental distress score Coef Education -0.7 Exposed 3 Exposed*education -0.4 a. What is the interpretation of the coefficient on "education". Please put in a sentence. 2 points b. What is the interpretation of the coefficient on "exposed". Please put in a sentence. 2 points c. What is the interpretation of the coefficient on "exposed*education". Please put in a sentence
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