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st: interactions

From   "Maureen Paul" <>
To   <>
Subject   st: interactions
Date   Mon, 02 Jun 2003 18:27:58 +0100


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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