I have in my model two dummy's, for a categorical variable with 3 categories (native, EU-immigrant and non-EU-immigrant). The reference category is 'native'. These are merely control variables.
Now I find a significant coefficient for one dummy, and not for the other. See last 2 rows here. Note these are log odds.
L1PRED S.E. Response R Fixed Part cons -1.775 0.080 female 0.431 0.042 age 0.016 0.001 FA 1.053 0.052 TV 1.778 0.112 second -0.277 0.052 third -0.269 0.070 fourth -0.298 0.093 fifth -0.163 0.102 EU_imm -0.011 0.092 nEU_imm 0.953 0.439
I was wondering what the right thing to do here is? Because any control variable that has no effect is usually left out of the model. But I cannot do that here, I think?
Would it be most common to recode 'native' and 'EU-immigrants' into one category, since there is no significant effect on the outcome?