I am currently looking at the following equation using Stata and unsure of how to interpret the interaction terms when there are three variables interacted together (2 binary variables and one continuous variable).
I ran this equation on Stata:
probit ownland i.employed##i.female##c.eduyrs
where ownland is =1 if the respondent owns agricultural land; employed= 1 if the respondent is currently working, female= 1 if the respondent is a woman, and EDU_YEARS captures years of education.
The results I receive is
|Own land||Coef.||Std. Err.||z||P>z||[95% Conf. Interval]|
I am pretty clear on the interpretation of "employed", "female", and "eduyrs" on the outcome:
- Employed variable would be the effect of being employed on Y (ownland) for uneducated men
- Female variable would be the effect of being a female on Y for unemployed and uneducated women, compared to men.
- eduyrs variable would be the effect of years of education for unemployed men
But I am confused about the interpretation of other variables.
- How would you interpret the estimated coefficient for Employed#Female#c.eduyrs? Would it be the effect of being employed women on Y for a unit change in years of education?
- How can I obtain the net effect of an increase in year of education for employed female versus unemployed male? Would that be nlcom (employed+ female+ i.employed#i.female+eduyrs + Employed#Female#c.eduyrs)-(eduyrs)?
- How can I obtain the net effect of an increase in year of education
for employed female versus unemployed female? Would that be
(employed+ female+ i.employed#i.female+eduyrs + Employed#Female#c.eduyrs)-(female + eduyrs + female#eduyrs)?
If someone could enlighten me on this, that would be very helpful. Thank you so much!