I want to investigate the relationship of 'Working from home (WFH)' and Job Satisfaction by running a fixed effects Regression with Stata 13.0.
Code:
xtset pers_id wave
Now I want to examine if employees are more satisfied when working from home if they are male or female respectively if they have children or do not have children.
Therefore I added an interaction term 'WFH*female' (2) and 'WFH*children' (3) (all three variables are dummy variables).
(I also Control for other individual-specific and firm-specific variables.)
How can I Interpret the results? Are interaction terms the right way to test this in a fixed effects Regression? Is it problematic if the interaction term includes a time-invariant variable or a time-varying variable?
Code:
(1) eststo: xtreg msat_job_z WFH $individualistic_control $firm_control_2 $wave , fe vce (cluster firm_id)
(2) eststo: xtreg msat_job_z WFH WFH_Female $individualistic_control $firm_control_2 $wave , fe vce (cluster firm_id)
(3) eststo: xtreg msat_job_z WFH WFH_children $individualistic_control $firm_control_2 $wave , fe vce (cluster firm_id)
-------------------------------------------------------------------------
(1) (2) (3)
Job Sat._z
Job Sat._z
Job Sat._z
-------------------------------------------------------------------------
WFH 0.178*** 0.220*** 0.149**
(0.0608) (0.0679) (0.0598)
Female 0 0 0
(.) (.) (.)
Children -0.0444 -0.0446 -0.0572
(0.266) (0.266) (0.264)
WFH*Female -0.178
(0.144)
WFH*Children 0.104
(0.106)
_cons -11.67 -11.42 -11.62
(8.114) (8.131) (8.118)
---------------------------------------------------------------------
N 12287 12287 12287
---------------------------------------------------------------------
If I rerun the FE regression with sample splits I get the following results:
(1) Females
(2) Males
(3) with Children
(4) withou Children
Code:
(1) eststo: xtreg msat_job_z WFH $individualistic_control $firm_control_2 $wave if female==1, fe vce (cluster
firm_id
)
(2) eststo: xtreg msat_job_z WFH $individualistic_control $firm_control_2 $wave if female==0, fe vce (cluster
firm_id
)
(3) eststo: xtreg msat_job_z WFH $individualistic_control $firm_control_2 $wave if children==1, fe vce (cluster
firm_id
)
(4) eststo: xtreg msat_job_z WFH $individualistic_control $firm_control_2 $wave if children==0, fe vce (cluster firm_id)
------------------------------------------------------------------------------------
(1) (2) (3) (4)
msat_job_z msat_job_z msat_job_z msat_job_z
------------------------------------------------------------------------------------
WFH 0.0675 0.215*** 0.379** 0.114*
(0.129) (0.0677) (0.150) (0.0630)
Female 0 0 0 0
(.) (.) (.) (.)
Children -0.0634 -0.0576 0 0
(0.0969) (0.264) (.) (.)
_cons -1.360 -14.38* -6.409 -12.40
(9.859) (8.656) (17.97) (7.743)
-----------------------------------------------------------------------------------
N 3409 8878 3040 9247
------------------------------------------------------------------------------------
How can I explain the differences in the results? Is sample split or interaction term more appropraite?
Thank you a lot in advance!
I really appreciate your help!
Best regards,
Lena
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