Hello,
I run a regression where the dependent variable is the fraction of individuals in a certain category that voted for a party (the fractions are between 0 and 1). My explanatory variable is the change in the gender wage ratio (women/men; the ratios are larger than 0 and most of them time smaller than 1) between the year in which the outcome variable is observed and some previous year. Thus, for a certain category, this could for example be 0.87-0.83=0.04. Since my variables are already in percent and percentage point changes, respectively, does it make sense to apply a log transformation to the outcome variable or both the outcome and the dependent variable for ease of interpretation? How would the coefficients be interpreted in those two cases? How do i interpret the coefficients without applying log transformations?
Thank you.
I run a regression where the dependent variable is the fraction of individuals in a certain category that voted for a party (the fractions are between 0 and 1). My explanatory variable is the change in the gender wage ratio (women/men; the ratios are larger than 0 and most of them time smaller than 1) between the year in which the outcome variable is observed and some previous year. Thus, for a certain category, this could for example be 0.87-0.83=0.04. Since my variables are already in percent and percentage point changes, respectively, does it make sense to apply a log transformation to the outcome variable or both the outcome and the dependent variable for ease of interpretation? How would the coefficients be interpreted in those two cases? How do i interpret the coefficients without applying log transformations?
Thank you.
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