Comparingcoefficientsacrossgroupsusingsuestandtest

TUESDAY,DECEMBER14,2010AT12:02AMPOSTACOMMENT

Forthelastfewweeksthetidbitshavecoveredtheuseofthetestcommandfollowingthemlogitcommand.Thishasbeenusefulfor
seeingthedifferentwaysthatthetestcommandcanbeusedforcomparingcoefficientswithinequationsandbetweenequations.

Let'sapplythesetoolstoanothersituation,tothecaseofcomparingthesizeofregressioncoefficientsbetween(among)groups.We
willcontinuetousethenlswdataset,andrenamethevariabletenuretocurr_expandcreatethevariableocc3basedonocc5.

.usenlsw
(NLSW,1988extract)

.renametenurecurr_exp

.recodeocc5(1=1"Prof/Mgmt")(2=2"Sales")(345=3"Other"),generate(occ3)
(837differencesbetweenocc5andocc3)

Let'srunaregressionpredictinghourlywagefromtotalworkexperience,currentworkexperience,educationstatus,andthreelevel
occupation.

.regresswagettl_expcurr_expgradei.occ3

Source|SSdfMSNumberofobs=2227
+F(5,2221)=106.98
Model|14370.805752874.16113Prob>F=0.0000
Residual|59668.6568222126.8656717Rsquared=0.1941
+AdjRsquared=0.1923
Total|74039.4625222633.261214RootMSE=5.1832

wage|Coef.Std.Err.tP>|t|[95%Conf.Interval]
+
ttl_exp|.1780861.0300155.930.000.1192256.2369466
curr_exp|.0550347.02445312.250.025.0070813.102988
grade|.5413644.046132311.740.000.4508973.6318314
|
occ3|
2|2.611124.29765448.770.0003.1948342.027414
3|3.142856.287814210.920.0003.7072692.578443
|
_cons|.2900189.73116970.400.6921.1438291.723867

Thisdatasetcontainsamixtureofwomenwhodoanddonotworkinaunion(indicatedbythevariableunion).Let'srunthis
regressionagain,butdososeparatelyforthosewhodoanddonotworkinaunion.

.regresswagettl_expcurr_expgradei.occ3ifunion==0

Source|SSdfMSNumberofobs=1405
+F(5,1399)=161.12
Model|8647.3191751729.46383Prob>F=0.0000
Residual|15016.6108139910.7338176Rsquared=0.3654
+AdjRsquared=0.3632
Total|23663.93140416.854651RootMSE=3.2763

wage|Coef.Std.Err.tP>|t|[95%Conf.Interval]
+
ttl_exp|.181499.02370177.660.000.1350042.2279937
curr_exp|.0563036.01955022.880.004.0179527.0946545
grade|.5461508.038129114.320.000.4713544.6209472
|
occ3|
2|2.366008.228289210.360.0002.8138341.918182
3|2.777399.229953512.080.0003.228492.326308
|
_cons|.7187908.60136711.200.2321.898469.4608877

.regresswagettl_expcurr_expgradei.occ3ifunion==1
 Source|SSdfMSNumberofobs=459
+F(5,453)=26.13
Model|1788.81375357.76274Prob>F=0.0000
Residual|6202.5489445313.692161Rsquared=0.2238
+AdjRsquared=0.2153
Total|7991.3626445817.44839RootMSE=3.7003

wage|Coef.Std.Err.tP>|t|[95%Conf.Interval]
+
ttl_exp|.1909579.05031013.800.000.0920878.2898281
curr_exp|.0582129.03747861.550.121.0154405.1318664
grade|.4788253.06493347.370.000.3512172.6064334
|
occ3|
2|.8742659.52333851.670.0961.902738.1542066
3|1.177582.47815772.460.0142.117264.2378993
|
_cons|.06084091.1239370.050.9572.1479372.269619

Thecoefficientsforttl_expandcurr_expappearverysimilarforthesetwogroups,butthecoefficientforgrademaybedifferent.The
coefficientsforthedummyvariableseemratherdifferentbetweenthegroups.

Let'srunthesemodelsseparatelyagain,butusetheestimatesstorecommandtostoretheresultsofeachmodel.

.regresswagettl_expcurr_expgradei.occ3ifunion==0

Source|SSdfMSNumberofobs=1405
+F(5,1399)=161.12
Model|8647.3191751729.46383Prob>F=0.0000
Residual|15016.6108139910.7338176Rsquared=0.3654
+AdjRsquared=0.3632
Total|23663.93140416.854651RootMSE=3.2763

wage|Coef.Std.Err.tP>|t|[95%Conf.Interval]
+
ttl_exp|.181499.02370177.660.000.1350042.2279937
curr_exp|.0563036.01955022.880.004.0179527.0946545
grade|.5461508.038129114.320.000.4713544.6209472
|
occ3|
2|2.366008.228289210.360.0002.8138341.918182
3|2.777399.229953512.080.0003.228492.326308
|
_cons|.7187908.60136711.200.2321.898469.4608877

.estimatesstorem0

.
.regresswagettl_expcurr_expgradei.occ3ifunion==1

Source|SSdfMSNumberofobs=459
+F(5,453)=26.13
Model|1788.81375357.76274Prob>F=0.0000
Residual|6202.5489445313.692161Rsquared=0.2238
+AdjRsquared=0.2153
Total|7991.3626445817.44839RootMSE=3.7003

wage|Coef.Std.Err.tP>|t|[95%Conf.Interval]
+
ttl_exp|.1909579.05031013.800.000.0920878.2898281
curr_exp|.0582129.03747861.550.121.0154405.1318664
grade|.4788253.06493347.370.000.3512172.6064334
|
occ3|
2|.8742659.52333851.670.0961.902738.1542066
3|1.177582.47815772.460.0142.117264.2378993
|
_cons|.06084091.1239370.050.9572.1479372.269619



.estimatesstorem1

Wecannowusethesuestcommandtosimultaneouslyestimatethesetwomodelsatonce.

.suestm0m1

Simultaneousresultsform0,m1

Numberofobs=1864

|Robust
|Coef.Std.Err.zP>|z|[95%Conf.Interval]
+
m0_mean|
ttl_exp|.181499.02369977.660.000.1350484.2279495
curr_exp|.0563036.02231662.520.012.0125639.1000433
grade|.5461508.044237712.350.000.4594466.632855
|
occ3|
2|2.366008.24311839.730.0002.8425111.889505
3|2.777399.257198310.800.0003.2814982.2733
|
_cons|.7187908.64099431.120.2621.975117.5375349
+
m0_lnvar|
_cons|2.373399.080351329.540.0002.2159142.530885
+
m1_mean|
ttl_exp|.1909579.05754193.320.001.0781778.303738
curr_exp|.0582129.04746171.230.220.0348104.1512362
grade|.4788253.0551098.690.000.3708137.5868369
|
occ3|
2|.8742659.54449161.610.1081.94145.192918
3|1.177582.48311112.440.0152.124462.2307013
|
_cons|.0608409.96613880.060.9501.8327561.954438
+
m1_lnvar|
_cons|2.616823.187671513.940.0002.2489942.984653

Now,wecanusethetestcommandtomakecomparisonsofthecoefficientsbetweenthetwomodels(comparingthecoefficients
betweenthegroups).

Let'sstartbyaskingwhetherthecoefficientsfromthetwomodelsareequaltoeachother.Notethatthefirstmodelis
namedm0_meanandthesecondisnamedm1_mean.Thetestcommandbelowcomparesallofthecoefficientsfromthesetwo
models.

.test[m0_mean=m1_mean]

(1)[m0_mean]ttl_exp[m1_mean]ttl_exp=0
(2)[m0_mean]curr_exp[m1_mean]curr_exp=0
(3)[m0_mean]grade[m1_mean]grade=0
(4)[m0_mean]1b.occ3[m1_mean]1b.occ3=0
(5)[m0_mean]2.occ3[m1_mean]2.occ3=0
(6)[m0_mean]3.occ3[m1_mean]3.occ3=0
Constraint4dropped

chi2(5)=10.41
Prob>chi2=0.0645

Thistestisnotsignificant.But,let'slookateachofthecontinuousvariablesindividually,comparingeachvariablebetweenthetwo
models.

.test[m0_mean]ttl_exp=[m1_mean]ttl_exp

(1)[m0_mean]ttl_exp[m1_mean]ttl_exp=0
 chi2(1)=0.02
Prob>chi2=0.8792

.test[m0_mean]curr_exp=[m1_mean]curr_exp

(1)[m0_mean]curr_exp[m1_mean]curr_exp=0

chi2(1)=0.00
Prob>chi2=0.9710

.test[m0_mean]grade=[m1_mean]grade

(1)[m0_mean]grade[m1_mean]grade=0

chi2(1)=0.91
Prob>chi2=0.3407

Noneofthesetestsaresignificant.

Let'sjointlytestthetwodummyvariablesassociatedwithocc3,comparingthembetweenthetwogroups.

.test([m0_mean]2.occ3=[m1_mean]2.occ3)///
>([m0_mean]3.occ3=[m1_mean]3.occ3)

(1)[m0_mean]2.occ3[m1_mean]2.occ3=0
(2)[m0_mean]3.occ3[m1_mean]3.occ3=0

chi2(2)=8.83
Prob>chi2=0.0121

Thistestissignificant.Wecanseparatelytesteachoftheoccupationdummies,asshownbelow.

.test[m0_mean]2.occ3=[m1_mean]2.occ3

(1)[m0_mean]2.occ3[m1_mean]2.occ3=0

chi2(1)=6.26
Prob>chi2=0.0124

.test[m0_mean]3.occ3=[m1_mean]3.occ3

(1)[m0_mean]3.occ3[m1_mean]3.occ3=0

chi2(1)=8.54
Prob>chi2=0.0035

Eachofthesedummiesareindividuallysignificant.

Thisconcludesthistidbitaboutcomparingcoefficientsbetweengroupsusingthesuestandtestcommands.

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