0
$\begingroup$

I very ensure about following interpretations, hence I would be very thankful for any advice. Let's say that my dependent variable is a percentage of managers in total employment ((managers employed in year t / total employment in year t)*100). I am estimating fixed effects model and I get the following results:

Code:
 xtreg managers using_computer  ln(RD) price_computer no_degree i.t1, fe vce(cluster industry1)

Fixed-effects (within) regression               Number of obs     =        120
Group variable: industry1                       Number of groups  =         10

R-sq:                                           Obs per group:
     within  = 0.2400                                         min =         12
     between = 0.7121                                         avg =       12.0
     overall = 0.7001                                         max =         12

                                                F(4,9)            =       4.79
corr(u_i, Xb)  = 0.7263                         Prob > F          =     0.0240

                               (Std. Err. adjusted for 10 clusters in industry1)
--------------------------------------------------------------------------------
               |               Robust
       nonrout |      Coef.   Std. Err.      t    P>|t|     [95% Conf. Interval]
---------------+----------------------------------------------------------------
using_computer |   .1085054   .0381358     2.85   0.019     .0222363    .1947746
price_computer |   .0019326   .0133758     0.14   0.888    -.0283255    .0321907
          no_d |  -.2675485   .0799442    -3.35   0.009    -.4483948   -.0867022
          1.t1 |  -.7452374   .5176425    -1.44   0.184    -1.916226    .4257513
         _cons |   56.46781   2.910799    19.40   0.000     49.88313     63.0525

(1) If using computer is the % of employees using computer, is to correct to interpret .1085054 as "for a 10% increase in the percentage of employees using computer, the share of managers increases by 1.08 percentage points?" In general - if both dependent and independent variable is in percentages (or as an index ) , does it mean I can interpret the coefficients the same way as when variables are in logs? That is "for percentage increase in x..., y increases by .. percentage points"?

(2) In addition, if "t1" is a dummy variable = 1 for the time of the crises - does it mean that during crises share of managers decreases by 0.7 percentage points? (if it was significant )

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.