Free Version
Moderate

# LPM Interpretation

EMETRC-F71PVG

Suppose you estimate a linear probability model, where the dependent variable $works$ is equal to 1 if the individual works for income and is equal to 0 otherwise. The independent variables are years of education, a male dummy variable, a married dummy variable, and a dummy variable indicating if children live in the household.

The results are:

$$\hat{works} = -0.02 + 0.037edu + 0.15male + 0.04married + 0.12children$$

How do you interpret the coefficient on $male$?

A

Men work $0.15$ more hours than women, on average, all else constant.

B

Men have a $0.15$ higher probability of working than women, on average, all else constant.

C

Married men have a $0.15$ higher probability of working than single men, on average, all else constant.

D

Men have a $0.15$ lower probability of working than women, on average, all else constant.