Question: Using the data in MROZ from Mroz ( 1 9 8 7 ) , we estimate the following linear probability model, where 4 2 8
Using the data in MROZ from Mroz we estimate the following linear probability model, where of the women in the sample report were in the labor force at some point during :
Here, let inlf in the labor force be a binary variable indicating labor force participation by a married woman during : inlf if the woman reports working for a wage outside the home at some point during the year, and zero otherwise. We assume that labor force participation depends on other sources of income, including husbands earnings nwifeinc measured in thousands of dollars years of education educ past years of labor market experience exper age, number of children less than six years old kidslt and number of kids between and years of age kidsge
i Provide the interpretation of the coefficient on exper. Why experience has been entered as a quadratic?
ii Holding other factors fixed, estimate the change in the probability and the point at which the past experience has no effect on the probability of labor force participation.
iii Provide the interpretation of the kidslt and kidsge coefficients.
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