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# Re: st: interactions

 From Richard Herrell To statalist@hsphsun2.harvard.edu Subject Re: st: interactions Date Mon, 2 Jun 2003 14:49:55 -0500 (CDT)

```Always a good idea to look at such data in a stratified format.

On Mon, 2 Jun 2003, Gene Fisher wrote:

> It seems to me that the effect of normal hours is contigent on
> perception of fairness.  That is why the interaction coefficient is
> significant.  The significant coefficient of normal hours indicates that
> it has an effect when fairness conditions are not present.  perception
> of fairness may reduce that effect to zero (I'll bet the interaction
> coefficient is about the same size as the normal hours coefficient, but
> opposite in sign), so that the coefficient of normal hours is not
> significant when an interaction term is not included in the equation.
> Run two regressions, one when fairness is 0 and one when fairness is 1.
> I'll be the coefficient of normal hours flips (and in that case neither
> may be significant) or one is strong and the other is near zero (so that
> the average of the two is too small to be significant when the data are
> pooled).  I don't think the significance of all three coefficients is
> suspicious.  Do the coefficients, particularly their signs, make sense?
>
> On Mon, 2003-06-02 at 13:27, Maureen Paul wrote:
> > Hi
> >
> > 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.
> >
> > M
> >
> >
> >
> > *
> > *   For searches and help try:
> > *   http://www.stata.com/support/faqs/res/findit.html
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> --
> Gene A. Fisher
> Department of Sociology
> University of Massachusetts
> 200 Hicks Way
> Amherst, MA  01003
> Phone: (413) 545-4056
> Fax:   (413) 545-3204
> email: fisher@soc.umass.edu
>
> *
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>
*
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```

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