Suppose You Are Interested in Explaining the Probability of Switching

question 11

Essay

Suppose you are interested in explaining the probability of Switching Jobs in a sample of 32,517 men and women and that using the probit you obtain the following coefficient estimates (standard errors in parentheses)
$\begin{array}{llcc}Swi\widehat {tch ~J}obs_ { i } = & 1.17 -& 1.86 \text { Salary } _ { i } - & 0.93 \text { Experience } _ { i } + &0.98 \text { Rent Home } _ { i } & - 1.24 \text { Number of Children } \\& ( 0.26 )& ( 0.72 ) &(0.45)&( 0.41)& ( 0.59 )\end{array}$

a)How should you interpret the estimated coefficient on Salary? Does this make economic sense? Explain.
b)How should you interpret the estimated coefficient on Rent Home? Does this make economic sense? Explain.
c)Do these estimates provide all of the information that you desire? If not,how can you obtain that information? Explain.

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Definitions:

Disequilibrium

A state of mental imbalance or confusion, often occurring when new information conflicts with existing beliefs or knowledge.

Amygdala

A part of the brain involved in experiencing emotions, particularly fear and pleasure.

Emotions

Complex psychological states that involve physiological responses, subjective feelings, and expressive behaviors.

Body Temperature

The measure of the body's ability to generate and get rid of heat, vital for the proper functioning of the body.