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Please answer all parts Question 4 A researcher is interested in the effect of the number of children on mother's employment. The sample includes married

Please answer all parts

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Question 4 A researcher is interested in the effect of the number of children on mother's employment. The sample includes married women aged 21-35 with at least a child. The dependent variable is defined as 1 if employed, Vi = To if not . and the regressor X, is the number of children. Suppose that there is no other control variable but the omitted variable bias does not exist. The following table presents the estimates from the linear probability model and the probit model. (Standard errors are reported in the parentheses.) OLS Probit Coefficient Coefficient Marginal Effect Number of Children 0.113 0.302 -0.114 0.001 (0.003) 0. 001 Constant 0.900 1.070 N/A (0.012) (0.033) N/A (a) How much does each model predict the employment probability to change if a woman has an additional child? Are the predictions from the two models comparable? (b) Find the 5% confidence interval for the probit coefficient on the number of children. (not marginal effect) (c) |4 points] Suppose that there is a woman with 10 children. Predict the probability of her having a job from each of the models. Which model do you think better in this case

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