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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 14:10:34 +0000 (GMT) |

--- Maarten buis <maartenbuis@yahoo.co.uk> wrote: > Another way of thinking about the difference between these two models > is that you are modeling the geometric mean of wage, while I am > modelling the arithmatic mean of wage. Below you can see that the two models give largely similar results. So, which one should you choose? There is a trade-off here: On the one hand people in your discipline are apperently used to -regress- in this context, but it is a pain to explain that the coefficients you report are ratios of geometric means rather than ratios of means. There is nothing wrong with geometric means and their ratios other than that a lot of people aren't used to them, and start getting worried about your analysis when there is no need to be worried. On the other hand, using -glm- will allow you to present your results in terms of ratios of means, but apperently people in your discipline aren't used to using -glm- in this contex. There is nothing wrong with using -glm- in this context other than that a lot of people aren't used to it, and start getting worried about your analysis when there is no need to be worried. Maybe the easiest way out is to add a paragraph to your methods section where you discuss the difference between the two models. Say that you choose one of these and say that you have also used the other model but that the results where very similar. *------------------------- begin example -------------------- sysuse nlsw88, clear gen ttl_exp2 = ttl_exp^2 gen wage_log = ln(wage) gen cons = 1 reg wage_log ttl_exp ttl_exp2 grade cons, eform("exp(b)") nocons glm wage ttl_exp ttl_exp2 grade cons, eform link(log) nocons *-------------------------- end example ---------------------- -- 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/

**Follow-Ups**:**Re: st: RE: Mincer wage function as a log function - how can stata calculate the percent values***From:*bumbuminc <bumbuminc@googlemail.com>

**References**:**Re: st: RE: Mincer wage function as a log function - how can stata calculate the percent values***From:*Maarten buis <maartenbuis@yahoo.co.uk>

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