You collect data from a sample of 545 employed men observed yearly from 1980 to 1987. What is the correct interpretation of the coefficient on the dummy variable married in the following regression model, where the variable is equal to one if the individual is married and zero if they are not.
reghdfe lwage union married, absorb( person_id) cluster(person_id)
(MWFE estimator converged in 1 iterations)
HDFE Linear regression
Absorbing 1 HDFE group
Statistics robust to heteroskedasticity
Number of obs = 4,360
F( 2, 544) = 63.73
Prob > F = 0.0000
R-squared = 0.5604
Adj R-squared = 0.4975
Within R-sq. = 0.0498
Root MSE = 0.3776
Number of clusters (person_id) = 545
(Std. Err. adjusted for 545 clusters in person_id)
| lwage | Coef. | Robust Std. Err. | t | P>|t| | [95% Conf. Interval] |
|---|---|---|---|---|---|
| union | .0700438 | .025152 | 2.78 | 0.006 | .0206369 | .1194507 |
| married | .2416845 | .0219918 | 10.99 | 0.000 | .1984851 | .2848838 |
| _cons | 1.525957 | .011534 | 132.30 | 0.000 | 1.5033 | 1.548613 |
Accounting for unobserved heterogeneity using fixed effects, individuals who are married earn 24 cents more than individuals who are not married.
Accounting for unobserved heterogeneity using fixed effects, individuals who are married earn 24% more than individuals who are not married.
Accounting for unobserved heterogeneity using fixed differences, individuals who are not married earn 24 cents more than individuals who are married.
Accounting for unobserved heterogeneity using fixed effects, individuals who are not married earn 24% more than individuals who are married.