I have a binary endogenous variable (retirement) with a binary instrumental variable and the final outcome variable is also binary. I run
ivreg2 in Stata. I know that
ivreg2 might not be optimal to use for a binary endogenous variable. Anyway my question is that when I run a regression,
ivreg2 gives me a second-stage coefficient larger than 1. How can I interpret it? Can I interpret it as the effect of retirement?
My concern is that since the retirement is the predicted value from the first stage, I'm not sure how to interpret it.