Question

# Estimate the following simple regression models (using the given data) Male Labor Participation = β0 +...

Estimate the following simple regression models (using the given data)

Male Labor Participation = β0 + β1*Average Hourly Earnings + ei

Female Labor Participation = β0 + β1*Average Hourly Earnings + ei

Interpret the estimated parameters of the above two regression models

 Year CLFPRM CLFPRF UNRM UNRF AHE 1980 77.4 51.5 6.9 7.4 6.8 1981 77.0 52.1 7.4 7.9 7.4 1982 76.6 52.6 9.9 9.4 7.9 1983 76.4 52.9 9.9 9.2 8.2 1984 76.4 53.6 7.4 7.6 8.5 1985 76.3 54.5 7.0 7.4 8.7 1986 76.3 55.3 6.9 7.1 8.9 1987 76.2 56.0 6.2 6.2 9.1 1988 76.2 56.6 5.5 5.6 9.4 1989 76.4 57.4 5.2 5.4 9.8 1990 76.4 57.5 5.7 5.5 10.2 1991 75.8 57.4 7.2 6.4 10.5 1992 75.8 57.8 7.9 7.0 10.8 1993 75.4 57.9 7.2 6.6 11.0 1994 75.1 58.8 6.2 6.0 11.3 1995 75.0 58.9 5.6 5.6 11.6 1996 74.9 59.3 5.4 5.4 12.0 1997 75.0 59.8 4.9 5.0 12.5 1998 74.9 59.8 4.4 4.6 13.0 1999 74.7 60.0 4.1 4.3 13.5 2000 74.8 59.9 3.9 4.1 14.0 2001 74.4 59.8 4.8 4.7 14.5 2002 74.1 59.6 5.9 5.6 15.0 2003 73.5 59.5 6.3 5.7 15.4 2004 73.3 59.2 5.6 5.4 15.7 2005 73.3 59.3 5.1 5.1 16.1 2006 73.5 59.4 4.6 4.6 16.7

1) Male Labor Participation = β0 + β1*Average Hourly Earnings + ei

Regression Analysis: CLFPRM versus AHE

Analysis of Variance

 Source DF Adj SS Adj MS F-Value P-Value Regression 1 34.097 34.0968 534.41 0.000 AHE 1 34.097 34.0968 534.41 0.000 Error 25 1.595 0.0638 Total 26 35.692

Model Summary

 S R-sq R-sq(adj) R-sq(pred) 0.252593 95.53% 95.35% 94.80%

Coefficients

 Term Coef SE Coef T-Value P-Value VIF Constant 79.885 0.201 397.27 0.000 AHE -0.3948 0.0171 -23.12 0.000 1.00

Regression Equation

Male Labor Participation =

 79.885 - 0.3948 AHE

β0 = 79.88, β1 = -0.3948

2)

Female Labor Participation = β0 + β1*Average Hourly Earnings + ei

Regression Analysis: CLFPRF versus AHE

Analysis of Variance

Model Summary

 S R-sq R-sq(adj) R-sq(pred) 1.38856 75.19% 74.19% 70.01%

Coefficients

 Term Coef SE Coef T-Value P-Value VIF Constant 47.94 1.11 43.37 0.000 AHE 0.8170 0.0939 8.70 0.000 1.00

Regression Equation

 Female Labor Participation = 47.94 + 0.8170 AHE

β0 = 47.94 , β1 = 0.817

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