Dear Stata users,
I am estimating a simultaneous equation model of two equations using _cmp_ command.
where
rshlt is health categorical variable, and rinlbrf stands for participation in the labor market
The result shows that the effect of age on both health and labor participation is negative as expected. However, when "age2" variable [age2=age*age] is included in the regression, the age effect is positive which doesn't make sense. why?
Thanks,
Maryam
I am estimating a simultaneous equation model of two equations using _cmp_ command.
Code:
cmp (rinlbrf = rshlt_# age rabplace i.seperated##i.kid18_ i.married##i.kid18_ lesshighschool college collegemore whitecollar2_ bluecollar wealth midwest northeast west hispanic black rsmoke rdrink|| hhidpn:) (rshlt_ =rinlbrf# age rabplace married seperated hispanic black midwest northeast west lesshighschool college collegemore whitecollar2_ bluecollar wealth rsmoke rdrink rconde || hhidpn:) if (sex==1 & age<=65) ,ind($cmp_probit $cmp_oprobit) nolr
rshlt is health categorical variable, and rinlbrf stands for participation in the labor market
The result shows that the effect of age on both health and labor participation is negative as expected. However, when "age2" variable [age2=age*age] is included in the regression, the age effect is positive which doesn't make sense. why?
Thanks,
Maryam