I am using a panel of 2249 schools with data from 2002-2008. Some of the schools are single sex schools whilst others are mixed sex.

Some background on my regression:

Consider the determinants of school performance (as measured by the percentage of pupils in the school who get 5 A*-C grades at GCSE: sch5ac). Start by using the following explanatory variables:

-stdschk2aps: a measure of the academic performance of pupils when they enter the school. The variable has been standardised to have mean zero and standard deviation one.

-schfsm: the percentage of pupils in the school who are eligible for free school meals; this can be thought of as a proxy for the proportion of pupils from low income families.

-schsen: the percentage of pupils in the school classified as having special educational needs (i.e. requiring additional support). Schools receive extra funding to help support these pupils.

I am asked to estimate the effect of each of these variables on the dependent variable (sch5ac) for the single sex schools, using the within estimator.


I get the following coefficients:

beta_1= 0.215

beta_2= -0.357

beta_3= 6.935

Both schsen and schfsm are measured as a percentage, as is the dependent variable sch5ac. So would a 1% increase in schsen lead to a 0.215% increase in sch5ac?

Since stdschk2aps is not measured as a %, but the dependent variable sch5ac is, would a unit increase in stdschk2aps increase sch5ac by 6.935 percentage points?

Any help would be great, Thanks Kai


That is the correct interpretation of your results.

However, it may not be appropriate to use OLS regression when the dependent variable is a percentage, there may be ceiling and floor effect, ridiculous predictions (> 100 or < 0), and the assumptions are likely to be violated.

Beta regression is probably better suited to your problem.

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    $\begingroup$ Thanks for your answer. This question is part of a problem set for which they have told us to specifically use OLS, but I'll take note of your point for my future work! Thanks again. $\endgroup$ – Kai_M Apr 24 '14 at 9:51

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