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Assignment on cross-section and panel data analysis
Typology: Exercises
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a.
3,637 individuals out of total 9,275 individuals, i.e., 39.21% individuals in the sample are
eligible for participation in 401(K) plan.
b. The given model is estimated below: e 401 k = β 0 + β 1 age + β 2 agesq + β 3 male + β 4 marr + β 5 fsize + β (^) 6 inc + β (^) 7 incsq + u
Dependent variable: 𝑒 401 𝑘
Independent variables Coefficient Robust Std. Err.
age 0.0280989 0.
agesq -0.0003254 0.
male -0.0300575 0.
marr -0.0366974 0.
fsize -0.0097131 0.
inc 0.0131638 0.
incsq -0.0000652 0.
constant -0.4996951 0.
Observations 9,
R-squared 0.
β 1 is the coefficient of age and estimated value of β 1 is 0.0280989 and p-value is 0.000. We can interpret β 1 that when the age increase by one more year (0<age<43.17), it will increase
