HW 5 AK
3. The sign on unemployment is counterintuitive. As unemployment increases, so should the demand
for aid. Income looks good, so does high school education. College is counterintuitive: as the
college educated folks increases, the percentage of people on aid should decrease. The coefficients on
young mothers and unwed mothers, both of whom are likely to have low incomes, look good.
4. Income is measured in dollars and afdc is measured as a percentage. 50 the coefficient on income is
The predicted percentage decrease for a one dollar increase in income is
increase income is expected to decrease afdc by