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st: Economic significance of categorical variable


From   Nerissa Fanoembi <nerissa_f@hotmail.com>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   st: Economic significance of categorical variable
Date   Mon, 10 Feb 2014 23:07:39 +0100

ear Statalist,

I am wondering how I can interpret the economic significance of categorical variables. 
For example I research the effect of the employer type (public or private sector employees) on risk aversion. I find that the probability of being risk averse in the public sector is 6.3 percentage points greater than in the private sector. The sample consists of 1137 individuals. How do I know whether this effect is economic significant?

Best regards,

Nerissa. 		 	   		  
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