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This FAQ is for users of Stata 7. It is not relevant for Stata 8 and later versions.

Stata 7: How does mfx calculate the marginal effects of dummy variables?

Title   Stata7: Calculating the effects of dummy variables
Author Ronna Cong, StataCorp
Date May 2001

By default, the marginal effect of a dummy variable x is calculated as the discrete change in F(x) as the dummy variable x changes from 0 to 1.

        Marginal effect of x = F(x=1) - F(x=0) 

If the nodiscrete option is specified, mfx will treat dummy variables as continuous ones.