Hi all,
I have a related question regarding interaction models and interpreting their results. I am interested in estimating the effects of unemployment rate changes (and other variables) on perceived job security of individuals. I'm also interested in testing how unemployment effects on perceived job security vary by gender, age, and the number of people retrenched in a company.
I ran the following fixed-effects regression and have attached the output. "male1" is a dummy which equals 1 for males. "unemp" and "fire1" are continuous variables referring to changes in the unemployment rates and number of people fired, respectively. Given that I am interacting the unemployment rate with several variables, I'm not very sure how exactly to interpret all the results.
Based on these results, is it correct to say that the unemployment effects on perceived job security are less negative for males, and are larger the higher the number of people fired? Also, how would I interpret the coefficients that are not interacted with "unemp"? ("tenure" is a continuous variable indicating time worked at company, contract is a dummy variable which equals 1 for a permanent contract, and "hire1" refers to the number of people hired).
I also wanted to estimate marginal effects as suggested in the posts above to aid in interpretation, but this would only work with factor variables if I understand correctly?
Thank you very much. Ashani
I have a related question regarding interaction models and interpreting their results. I am interested in estimating the effects of unemployment rate changes (and other variables) on perceived job security of individuals. I'm also interested in testing how unemployment effects on perceived job security vary by gender, age, and the number of people retrenched in a company.
I ran the following fixed-effects regression and have attached the output. "male1" is a dummy which equals 1 for males. "unemp" and "fire1" are continuous variables referring to changes in the unemployment rates and number of people fired, respectively. Given that I am interacting the unemployment rate with several variables, I'm not very sure how exactly to interpret all the results.
Code:
xtreg jobsec c.unemp##(male1 c.age c.fire1) tenure contract hire1, fe i(id) cluster(id) Fixed-effects (within) regression Number of obs = 48,024 Group variable: id Number of groups = 6,003 R-squared: Obs per group: Within = 0.3689 min = 8 Between = 0.0446 avg = 8.0 Overall = 0.2689 max = 8 F(10,6002) = 1392.42 corr(u_i, Xb) = -0.0216 Prob > F = 0.0000 (Std. err. adjusted for 6,003 clusters in id) ------------------------------------------------------------------------------- | Robust jobsec | Coefficient std. err. t P>|t| [95% conf. interval] --------------+---------------------------------------------------------------- unemp | -.1471274 .0133572 -11.01 0.000 -.1733122 -.1209425 1.male1 | -.016862 .016438 -1.03 0.305 -.0490864 .0153625 age | -.018017 .0009026 -19.96 0.000 -.0197865 -.0162475 fire1 | -.1535922 .001901 -80.79 0.000 -.1573189 -.1498656 | male1#c.unemp | 1 | .0113405 .0056862 1.99 0.046 .0001935 .0224875 | c.unemp#c.age | .0002964 .0002653 1.12 0.264 -.0002238 .0008165 | c.unemp#| c.fire1 | .0026306 .0004924 5.34 0.000 .0016654 .0035958 | tenure | .1037306 .0026944 38.50 0.000 .0984487 .1090125 contract | 1.138106 .0206589 55.09 0.000 1.097607 1.178605 hire1 | .021884 .0015766 13.88 0.000 .0187933 .0249747 _cons | 6.521757 .0464188 140.50 0.000 6.430759 6.612754 --------------+---------------------------------------------------------------- sigma_u | 1.2486483 sigma_e | 1.6375178 rho | .36766667 (fraction of variance due to u_i) -------------------------------------------------------------------------------
Based on these results, is it correct to say that the unemployment effects on perceived job security are less negative for males, and are larger the higher the number of people fired? Also, how would I interpret the coefficients that are not interacted with "unemp"? ("tenure" is a continuous variable indicating time worked at company, contract is a dummy variable which equals 1 for a permanent contract, and "hire1" refers to the number of people hired).
I also wanted to estimate marginal effects as suggested in the posts above to aid in interpretation, but this would only work with factor variables if I understand correctly?
Thank you very much. Ashani
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