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Unformatted text preview: PAM 305 - Introduction to Multivariate Analysis Fall 2006 Homework 5 Due date: November 17th In this homework you will use the data set MROZ.dta to analyze the labor force participation decision of married women in 1975. The relevant variables for the analysis are: inlf : Binary variable that takes the value 1 if the woman participated in the labor force, 0 otherwise. nwifeinc : Other sources of income, including husbands earnings (in thousands of dollars). exper : Labor experience expersq : The square of experience educ : Education age kidslt 6: Number of children less than 6 years old kidsge 6: Number of children between 6 and 18 years old Question 1 Estimate by OLS the following linear probability model (LPM)(ignoring that the homoskedasticity assumption is violated) 1 inlf = o + 1 nwifeinc + 2 educ + 3 exper + 4 expersq + 5 age + 6 kidslt 6+ 7 kidsge 6+ u and use the estimates obtained to answer the following questions: a. Which variables are significant at the 5% level?a....
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- Fall '06