I am trying to find out if change in marital status have effect on person's health. I am using 2 data points panel data.
My question is, how to interpret fixed coefficients if independent variable is categorical? Does coefficient in fixed effect mean that if person change marital status from married (reference category) to divorced, his health get better by .25?
Reason why I ask (other than this within change disproves my theory), if I make for example "widowed" category reference, I still get fixed effects. It's really unlikely for person to get from "widowed" to "divorced" in 4 years (50+ population).
So, am I interpreting the fixed effects with categorical independent variables wrong?