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I wonder if anyone can help me figure this out. I am running a fixed effects regression. The dependent variable is overtime hours. On the left hand side I have normal hours of work and a dummy variable indicating fairness perceptions. Both of those variables entered separately appear as insignificant. However, when I interact them, they are highly significant (both the interactions and the separate variables). Isn't there something suspicious about this?
Thanks for any help on this. I have been thinking about this all day but can't figure it out.
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