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  • Problem with Hierarchical Regression

    Hello,

    I am attempting to determine if there is a relationship between job satisfaction and working hours. To do so, I have been employing a hierarchical regression to determine if there is a non-linear relationship between the two variables using the following code:

    reg job_satisfaction age monthlypay education
    reg job_satisfaction HW_centered age monthlypay education
    reg job_satisfaction HW_centered HW_centeredsq age monthlypay education

    However, when I try to include employment type (wage employed vs. self employed) as a moderating variable, I encounter collinearity between HW_centered and my binary self_emp moderating variable. I have tried transforming HW_centered by log-ing the values and introducing polynomials, but I keep encountering the same problem. I have recoded my variables, but since self_emp is a binary variable I am a little bit lost on what else I can possibly try to resolve collinearity.

    This is the output when I include self_emp as a variable:
    . reg job_satisfaction HW_centered HW_centeredsq self_emp age monthlypay education
    note: self_emp omitted because of collinearity.
    Source SS df MS Number of obs = 13,241
    F(5, 13235) = 6.53
    Model 14.2207733 5 2.84415467 Prob > F = 0.0000
    Residual 5764.34323 13,235 .435537834 R-squared = 0.0025
    Adj R-squared = 0.0021
    Total 5778.56401 13,240 .436447432 Root MSE = .65995
    job_satisfa~n Coefficient Std. err. t P>t [95% conf. interval]
    HW_centered -.0016537 .0006207 -2.66 0.008 -.0028703 -.000437
    HW_centeredsq .0000213 .0000274 0.78 0.436 -.0000323 .0000749
    self_emp 0 (omitted)
    age .0004921 .0004349 1.13 0.258 -.0003604 .0013446
    monthlypay .0000226 4.39e-06 5.16 0.000 .000014 .0000312
    education .0156488 .0084475 1.85 0.064 -.0009094 .032207
    _cons 2.593788 .0243984 106.31 0.000 2.545964 2.641613
    .
    end of do-file
    Any advice would be greatly appreciated

    Regards,
    Ayyan Tareen




  • #2
    Untitled document-1.pdf here is a more clear picture of the final output.

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