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st: Re: joint effect of two endogenous variables


From   xueliansharon <[email protected]>
To   [email protected]
Subject   st: Re: joint effect of two endogenous variables
Date   Tue, 24 Aug 2010 08:28:48 -0700 (PDT)

>The first thing that comes to mind is that you will need to make 
>sure that the unit of y1 and y2 are equal, if y1 is in seconds and 
>y2 is in liters, than what does a unit change mean? A common 
>approach is to standardize variables, i.e. subtract the mean and 
>divide by the standard deviation. 

Maarten, my y1 is people's age started to work, y2 is years of schooling,
what I want to get is the joint effect when people started to enter the
labor market one year later and receive one more year of schooling. 

But I didn't understand why "constraining the effects to be equal" could
compute the joint effect, could you explain it more explicitly?

Thank you in advance.
Sharon
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