Purchase Solution

Interpreting Marginal Effects after the Probit Model

Not what you're looking for?

Ask Custom Question

Interpreting Marginal Effects after the Probit Model:

I have ran a Probit regression, then computed the Marginal Effects after Probit. I want to interpret the effects of men, education, and experience on the model. How does one make quantitative interpretations for this scenario? The output is below:

Marginal effects after probit
y = Pr(empst31) (predict)
= .78966013
------------------------------------------------------------------------------
variable | dy/dx Std. Err. z P>|z| [ 95% C.I. ] X
---------+--------------------------------------------------------------------
men*| .1729278 .00698 24.78 0.000 .159252 .186603 .467327
racebx*| -.0572455 .01134 -5.05 0.000 -.079465 -.035025 .151777
racethnx*| -.0409015 .0092 -4.45 0.000 -.058934 -.022869 .308472
education | .0510486 .00256 19.93 0.000 .046029 .056068 3.14991
experi~e | -.0016308 .00041 -3.93 0.000 -.002444 -.000818 30.5769
marry31x*| .0429733 .00777 5.53 0.000 .027744 .058202 .625885
region31 | -.0040225 .00373 -1.08 0.281 -.011339 .003294 2.76932
msa31*| .0291475 .01016 2.87 0.004 .009241 .049054 .830042
------------------------------------------------------------------------------
(*) dy/dx is for discrete change of dummy variable from 0 to 1
------------------------
Here is the way that I was interpreting the variables - I want to make sure it is correct I was not sure if you interpret as a percentage or not. The dependent variable in the model is employment

There were my answers I would like examined.

The probability of a man being employed is 17.29% higher then females, all else held constant. Education increases the probability of employment by 5.10% all else held constant. Experience decreases the probability of employment by -.163% all else held constant.
______________

Update
1=employed
0 = unemployed

Purchase this Solution

Solution Summary

This solution provides an explanation of how to interpret marginal effects after the probit model.

Solution Preview

The interpretation of a probit coefficient, like your coefficient for "men" is that a one % increase in probability of being male predicts a 17.29% increase in probability of being ...

Purchase this Solution


Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.