Statalist


[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: st: RE: Mincer wage function as a log function - how can stata calculate the percent values


From   Maarten buis <maartenbuis@yahoo.co.uk>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: RE: Mincer wage function as a log function - how can stata calculate the percent values
Date   Wed, 29 Oct 2008 11:55:25 +0000 (GMT)

--- bumbuminc <bumbuminc@googlemail.com> wrote:

> I mean
> 
> Badi Baltagi wrote 2002 in "Econometrics" Page 84:  In the
> multivariate analyses,the variable wage per hour are a  log function.
> With these semi-log regression, the coefficient can in an exponential
> equation [exp(b)-1]  interpret the covariate over the dependent
> variable as an percental effect.

In the example I gave you earlier you will be able to make a statement
like the the hourly wage changes by a factor of 1.08 for a year
increase in education. This, obviously implies an 8% increase. In my
particular sub-sub-discipline people are used to interpreting odds
ratios, which have a very similar "factor change" interpretation, so I
won't bother with subtracting 1, and multiplying by 100. Whether that
works in your sub-sub-discipline is up to you.

-- Maarten

-----------------------------------------
Maarten L. Buis
Department of Social Research Methodology
Vrije Universiteit Amsterdam
Boelelaan 1081
1081 HV Amsterdam
The Netherlands

visiting address:
Buitenveldertselaan 3 (Metropolitan), room N515

+31 20 5986715

http://home.fsw.vu.nl/m.buis/
-----------------------------------------


      
*
*   For searches and help try:
*   http://www.stata.com/help.cgi?search
*   http://www.stata.com/support/statalist/faq
*   http://www.ats.ucla.edu/stat/stata/



© Copyright 1996–2014 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index