Interpretation of coefficients

[Aurora Esposito]

Good morning,
I would like to ask you a question about the right interpretation of coefficient in my analysis.
My dependent variable is labor_share computed as labor compensation over value added of a given sector. It ranges from 0 to 1, while my independent variable is tangible capital stock net (millions of national currency) in logarithm form. If my coefficient is -0.02 is it right if I interpret it as "the 1% increase in tangible capital stock is associated with a reduction in labor share of 0.02 percentage points" ?
Is it better to consider the dependent variable in % terms? Hence, ranging 0 -100?

[Maxence Morlet]

You have a level-log regression, and your interpretation seems correct. 1% increase in the regressor --> percentage point increase in the dependent variable, in your case.

You may want to check out a fractional probit or fractional logit as well, in addition to OLS which can go out of bounds. But to be fair, OLS can go out of bounds with continuous dependent variables as well...