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Question 4 For this question, use the dataset mroz from the wooldridge package. data (mroz, package='wooldridge' ) We want to estimate a model that explains
Question 4 For this question, use the dataset mroz from the wooldridge package. data (mroz, package='wooldridge' ) We want to estimate a model that explains the probability for a woman to be in the labour force. The dependent variable is inlf which is 1 if the woman is in the labour force and 0 otherwise. In the model, we want to include education (educ), experience (exper) and experience squared, husband's wage (huswage) and the number of children younger than 6 years old (kidslt6). 1. Estimate the model using a linear regression. Interpret the coefficients. Make sure you use robust standard errors. 2. Explain the benefits of estimating the model by logit and/or probit in this case. 3. Estimate the model using the logit method. Interpret the results. 4. Estimate the model using the probit method. Interpret the results. Explain why the results differ from the previous question. 5. Explain how to compute the marginal effect manually in the previous two questions and do it for education. 6. Using the model estimated by logit, compute the marginal effect using the margins package and interpret the coefficient
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