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Regression models involving categorical and continuous dependent variables with a study of labour supply of married women Lau, Yat Wing

Abstract

This thesis is going to consider the inferences about the relationships that determine jointly a continuous variable and a categorical variable. These relationships can be considered separately into two models: a regression model and a probability model. The regression model can be estimated by ordinary least squares, or Zellner's two stage method. The probability model is estimated by the method of Serlove and Press. Such relationships will be given more complex consideration. This kind of model is applied in the analysis of an economic problem. It is to consider the labour supply of married women. Data are pooled from the Panel Study of Income Dynamics 1972. It is found that the age of the youngest child is the most significant factor to determine the number of hours worked by a married woman, and birth gap is the major effect in the probability of a wife having a child not older than six years of age.

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